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Technology Stocks : Semi Equipment Analysis -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (13320)	2/12/2004 10:21:50 PM
From: StanX Long	Read Replies (1) \| Respond to of 95755

Fabless Companies See Increased Investment, FSA Says Online staff -- Electronic News, 2/11/2004 Funding raised by fabless companies sequentially increased 23 percent in Q4 2003, according to the Fabless Semiconductor Association (FSA). Thirty-nine fabless companies raised nearly $484 million in the December, compared to 34 raising $395 million in Q3. Moreover, the $484 million raised in Q4 was the largest amount of funding in one quarter since Q1 2002, and the 39 companies involved represented the most deals closed since Q1 2001, the industry group reported today. FSA also noted that while the number of U.S. venture capital investments declined 16 percent year-over-year in Q4, fabless semiconductor investments increased 44 percent year-over-year. On a year-over-year basis, Q4's fabless funding represented a 41 percent increase in terms of dollars compared to Q4 2002. For the full-year, FSA's research identified 135 fabless companies raising $1.6 billion throughout all of 2003, compared to 109 fabless companies raising $1.6 billion in 2002, a 24 percent increase in the number of total deals closed year-over-year. The FSA also found that the number of companies closing early rounds of funding continued to decline in 2003. Indeed, 35 percent of all funding deals closed in 2000 went to companies seeking their first round of funding, compared to 33 percent in 2001, 21 percent in 2002 and only 17 percent in 2003. In addition, the average amount of money raised in the first round also continued to decline, the group reported. In 2000, the average amount closed in the first round was $15.8 million, compared to $8.8 million in 2001, $8.3 million in 2002 and $7.1 million in 2003. "Even with the focus on increased fabless fundings in 2003, it is clear that emerging companies must still demonstrate a combination of proven technology, a strong business model and an experienced management team," said Lisa Tafoya, director of research and projects for the FSA, in a statement. "Proving profitability is the ultimate goal, and companies must develop concisely written business plans that reflect innovative methodologies and clear strategies for achieving long-term success. They must learn to stretch their seed dollars, meet aggressive milestones and prove they have the business acumen to achieve faster time-to-market."