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To: Rutgers who wrote (142)	1/3/2006 11:00:30 AM
From: Rutgers	Read Replies (1) \| Respond to of 285

SGTL recap of recent events to keep in mind: From today, January 3, 2006: 09:57 SGTL SigmaTel tgt cut to $11 before the open at Wedbush (13.31 +0.31) -Update- briefing.com finance.messages.yahoo.com From Post on 12/7/2005 8:55:41 AM Message 21950895 05-Dec-05 07:39 ET In Play SigmaTel Q4 tracking well, but Apple may roll-out a new iPod Shiffle next year not using SGTL (SGTL) 15.57 : CIBC says its trip to Asia last week revealed several incremental data points impacting the MP3 market and, by extension, #1 MP3 IC supplier Sigmatel. On the positive side, demand and sell-through for MP3 players are running ahead of expectations. With one month left in the qtr, the firm thinks The co's Q4 is tracking well and that the firm's below-Street ests. for $82M and $0.12 could be conservative. However, the co's checks indicate that Apple (AAPL) is planning to introduce an updated version of its popular iPod Shuffle with a display next year. Checks suggest that Apple is unlikely to continue using SGTL silicon. From Post on 12/7/2005 8:28:16 AM Message 21950833 07-Dec-05 07:33 ET In Play Details of Sigmatel downgrade from Thomas Weisel (SGTL) 15.68 : Thomas Weisel downgrades SGTL to Peer Perform from Outperform, says that based on its checks, Q4 is likely tracking below expectations due to significant NAND flash shortages, which has resulted in weaker-than-expected demand among second and third-tier O.E.M.s; some O.E.Ms apparently are receiving only 50% of their flash orders. Firm also notes that competitive pressures are heating up, particularly at the low end of the market; adds that there is limited visibility on SGTL's 3600 product ramp. While the stock valuation already discounts a "healthy dose" of bad news, firm suggests shares will be range-bound due to its expectation of near-term downward estimate revisions coupled with greater uncertainty with the 3600/FM tuner ramp and the competitive concerns. ============================================================ From Post on 10/26/05 Message 21826552 17:39 SGTL SigmaTel confernce call summary (13.65 -0.82) -Update- On conference call, SGTL says equipment issues at test and assembly partner affected qtr. Co is currently at 100% capacity, and expects to achieve buffer stock by mid-November. Expects to have another assembly and test provider in place soon. Says the production mix became more complex, and SGTL began building to customer orders. Says demand was strong in Sept, but lack of product availability affected revs. Experienced tightness in wafer supply. Says inventories were worked down to fulfill demand. Gross margin was 51% in Q4, and drop in margin from 55% represents a shift in products to lower end. SGTL will be filing an S-1 later this week related only to the offering of restricted shares affiliated with the Protocom acquisition. During Q&A, when asked to clarify Q4 guidance, co says it is seeing approx $5-6 mln in revs from acquisitions, with about 5-6 mln in spillover from Q3. When asked if that suggests about a flat core business, co responds by saying that is their current guidance, and they are still trying to deal with production issues. Says they are approx 1 mln parts short of what is in demand for Oct, hoping to be caught up by mid-November. Co's concern is with hanging on to the customer through the delays. When asked about selling stock at $20, CEO says 10b5-1 program was put in place earlier this year, and he set the low end at $20, thinking the stock would never get there. Says any prudent financial planner advocates diversification, and says he still has 900K in options. Says the 15K he sold should not be considered as changing his opinion or stake in the co, and that if he was dumping the stock, he would hope to be selling a "hell of a lot more than 15K shares." Simply says minimum price in 10b5-1 program is $20. Q&A is still going on. See also this post: Message #142 from Rutgers at 12/29/2005 5:42:06 PM Message 22013063