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Technology Stocks : Benchmarq Micro(BMRQ) -- Ignore unavailable to you. Want to Upgrade?

To: Brad Bryker who wrote (283)	1/26/1998 11:43:00 PM
From: Rex Dwyer	Respond to of 313

This is frustrating. The top line was disappointing, as can be seen from not mentioning it in the press release text. Of course, we still broke a new record in the battery management field. As was my investment thesis back in early 1996, the battery management business is what will take this company higher. I only wish the other product lines would not decrease. Backlog Backlog has dropped for battery management ICs on a sequential quarter basis, but is up strongly from 4Q of last year. This is mostly seasonal. It was worse last year. The backlog in the 4Q96 release was $3.1M, now its $4.7M. So, we're up 52% from last year. The backlog had dropped from $5.5M in 3Q96 to $3.1M in 4Q96, a 43% drop. Now, they show a 41% drop from 3Q97 to 4Q97. Basically, the BMP business is growing between 35% and 55% annually, as it has been for at least two years now. We will just have to deal with the seasonality and the unreliable and opportunistic NV business. Earnings are at $0.21 fully diluted compared to 0.23 in 4Q96. Last year they didn't pay full taxes so it was a higher reported number at $0.35. If you remember, I had estimated $0.23 for that Q fully taxed. Message 619767 Revenue is disappointing. The NV business was a big disappointment. Soon, the BMP business will carry this whole company. Its a matter of when. On the bright side, the NV backlog remained. Rex

To: Brad Bryker who wrote (283)	1/27/1998
From: Rex Dwyer	Read Replies (2) \| Respond to of 313

If the NV business does not grow at all, and the battery management business (BMP) grows at 40%, we would still have a 21% grower. The BMP business in 1997 was $23M. The total revenues were $44 M. The BMP business is growing at about 40%. So, if the rest of the business is flat, BMRQ is a 21% grower for 1998 and a 24% grower in 1999. My feeling is, however, that the smart battery will have a step increase in demand when it "catches on" in the next year, especially when the cell phone designs ramp up. So, I will hold my 16 P/E stock until then. Rex BMRQ @ $14, P/E = 16