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

To: Doug who wrote (3613)	6/17/1998 12:28:00 PM
From: Winston Kim	Read Replies (1) \| Respond to of 6565

Does anyone know if there was added research expense due to the CDMA chipset?? It seems that this would effect the earnings for VLSI negatively...that is why the eps was lowered...

To: Doug who wrote (3613)	6/17/1998 2:00:00 PM
From: Maui Jim	Read Replies (1) \| Respond to of 6565

Doug, The following are Gruntal's new estimates: Q2: 0.07 Q3: 0.20 Q4: 0.28 99: $1.25 Project share price: $30 (year end); $48 (1999) I think these estimates are conservative. The problem is that nobody, including management and anyone on this board, really knows what quantities of several new VLSI ICs will be sold (CDMA, DIVX, OneC). I think these estimates are low, because the seasonality factor is much stronger than the analysts are calculating. The fixed costs remain each quarter, yet the substantial marginal sales increase goes in large part into the bottom line. VLSI has been growing wireless at 100% per year through 1997, and those estimates imply growth coming to a screaching halt, I don't think so. If the expected pick up in orders arrives this year, Q3 and Q4 should be closer to $.50, and unless we get a recession I think 99 should be around $2.00. R&D for the CDMA project has been expensed over the last two years, as is R&D for other new products, so it is accounted for each quarter. Jim