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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: SpecialK who wrote (2752)	1/14/1998
From: Tech Investor	Read Replies (2) \| Respond to of 6565

VLSI is in transition from PC to consumer electronics. The flat revenue reflect the transition, the important thing is the margine, and the net income, which VLSI has been improving this year. I am personally willing to buy @20 3/4, I think it is a very good price to long. I have a feeling VLSI will do good. Regards

To: SpecialK who wrote (2752)	1/14/1998 3:29:00 PM
From: Clarksterh	Read Replies (1) \| Respond to of 6565

Ketan - As someone mentioned before, the total revenues are somewhat deceptive: 1) VLSI has grown their communications business (wireless and networking) 37% in the last nine months. At the end of last quarter it made up 55% of revenues. If it grows at that rate again this quarter, it should add $11 million in sales this quarter. 2) The first two quarters of this year included revenues from COMPASS, which were not included in the last quarter, since it was sold to Avant!. If it had been included it would have been an extra $6.5M. (Note - they sold it because it was a drag on earnings and it was shrinking.) 3) The only reason that VLSI has not shown substantial revenue growth in the last year is that their computing business and COMPASS shrunk dramatically. At this point, COMPASS has been sold, and the computing business is only 20-25% of revenues (It started the year at 30%), so the effects from shrinkage of these products is likely to be much smaller/nonexistent. Hope this helps. The only real concern with VLSI is that they are overly dependent on one customer (Ericsson), but the upside is that the communications business is in a boom, and is likely to continue to be so for the next 5 to 10 years. Also on the upside, I would expect some continued improvement in GM up to maybe 47% as they finally get rid of the San Jose facility, and improve the efficiency of the Austin plant. Clark