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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Frank Povoski who wrote (4936)	1/28/1998 7:52:00 PM
From: Synapsid	Read Replies (1) \| Respond to of 8193

I listened to most of the conference call (int. call cost some $$$) and the company seems to be very frank (not overly optimistic) about the prospects. Clearly the ramping down of a major mass storage customer and decreased mass storage revenues raises a few questions. If it's just this one customer then mass storage revenues will remain significant. I still don't know who it is, and one wonders why this customer was lost. Cirrus new read channel chip is described in SEC documents as ramping up in "calender 1998". I have to assume this chip was too late for the OEM concerned. However, looking into FY99 mass storage looks very solid indeed. New read channel chip, sampling fully integrated disk drive silicon solution, integrated DVD-ROM silicon, CD-ROM penetration, chip in Sony/Fuji floppy replacement are all strong positives. Especially since Cirrus is and will remain a leader in this specialist area, unlike areas like 3D graphics which are extremely competitive. The other divisions should do OK in the near term. One remaining question is fab utilization -- does Cirrus have enough unit volume to fill the fabs? At least Cirrus isn't placing any bets like it did last year with the initial Laguna-3D product. I am not good at predicting stock price movements, but given sound fundamentals and future visibility, perhaps CRUS stock will see higher levels in the next 6 months.