Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Hashem Akbari who wrote (4003)	9/2/1998 6:01:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Hashem, Are you still holding VLSI? I was wondering if you could plug the new sales guidance into your model and see what you come up with. I used sales down 10% (worst case according to the company), COGS (62% of sales), R&D (20% of sales), G&A (18% of sales), and tax bracket (27%). Under this scenario, VLSI would eke out a 1.1 cent operating profit. Obviously they are going to report a loss with the special charge, but I don't think the market will worry about that. As a point of comparison, the actual numbers last quarter were COGS (62%), R&D (19%), G&A (16%), tax bracket (27%). If they kept R&D at 19% of sales and G&A at 16% of sales, they would have an operating profit of 8 cents. That would look much better. In absolute terms, the proforma looks like this: Sales: $124,030,000 COGS: $76,889,000 R&D: $24,806,000 G&A: $22,325,000 EBIT: $0 Interest, net: $700,000 EBT: $700,000 Income tax: $189,000 Net income: $511,000 Shares: 46,000,000 EPS: $0.01 Thanks, Dan