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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (1094)	1/7/1998 11:09:00 PM
From: MajorAlpha	Read Replies (1) \| Respond to of 4710

The annual report says that VTSS has had to turn down some business do to capacity constraints and has thus moved up its new fab to a summer 98 opening instead of the 1Q 1999 opening that was originally planned. Backlog is very strong. The new fab uses 6 inch wafers and .25 micron technology. If production goes smoothly and demand continues.. this very profitble company will see a huge cost savings at the new facility. I think Asia is a non-issue for this company. Earnings estimates should be in the bag for the next couple quarters barring something really unique (e.g. A production problem) and VTSS could smash earnings estimates and the 6 inch wafer fab kicks in. Costs should definately come down if vtss MGMT executes properly..and anyone who has owned this puppy since the dog days of 94(LIKE ME) realizes that management is very astute and frugal. Nothings a sure thing but I sure wouldn't bet against this company.