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

To: Sam Nizam who wrote (1353)	4/9/1998 8:44:00 PM
From: The Ox	Read Replies (1) \| Respond to of 4710

I firmly believe that this company will produce the expected earnings or better. Also, I anxiously await the direction they give to analysts for the future. Their track record is stellar and I have seen the explosion in bandwidth demand first hand. A look at the strength in the telecom business and the very high end networking business as well as the demand for faster internet access all continue to validate my bullish stance with respect to VTSS. If there is dark spot in the report given on Monday after the bell I would expect it might be that they are having a little more difficulty bringing the new fab on line as quickly as they want. New technology and the associated processes often take some trial and error time to get the kinks worked out. If I have it all wrong, I'm sure there will be plenty of people posting here to rub salt in my wounds. ========================================================== Here is a post I made in OCT 97. I think we can use some of the data to gauge the new earnings release: Let's dig deeper into the #s that VTSS just reported. They continue to impress me every qtr (not very easy to do!). Compare 1997 to 1996: Lets start with the obvious. EPS growth was 104%. All those who kept saying this company is overvalued due to it's high PE were dead wrong. I have some concerns going forward, but that's only natural. The biggest issue might be the tax rate which is currently 10%. I don't know if this changes in FY98. Obviously any increased tax rate will reduce the bottom line significantly. If anyone knows the tax rate for FY98, please post and thanks in advance. Revenues increased 59%!! Looking at total expenses as a percentage of total revenues, they decreased from 80% to 73%. Lets breakdown the expenses a little more. Cost of revenues reduced from 48% of total revs to 43%. R+D roughly the same at 16% of total revenues. Keep in mind that actual $ spent on R+D went up over 50%. SG+A reduced from 14.8% to 13.2% of total revenues. All these numbers are very impressive and show how this company appears to be managed beautifully. All of this is food for thought. New plant will become operational this year. I look forward to this next year now, more then ever. Keep up the good work. GO VTSS (I have tried to be as accurate as possible with the #s included in this post. Please keep in mind there may be errors in the above calculations or the information I printed from AOL news may be inaccurate. Good luck to all.) ==================================================== Good luck to us all...go VTSS, Above my opinion...do your own homework, Michael