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 : SILICON STORAGE SSTI Flash Mem -- Ignore unavailable to you. Want to Upgrade?

To: Richard Wang who wrote (277)	8/7/1998 2:52:00 PM
From: Smilodon	Respond to of 1881

The inventory build was intentional and started in Q1. With the rollout of new products in Q3 and Q4, SST wanted to make sure foundry capacity was available. So, in the slow period of Q1, they built up inventory of existing products. This allows them to use their alloted capacity in Q3 and Q4 for new products. A good idea, but the recent reduction in Taiwan Fab utilization rates indicates they probably did not need to do it. The inventory should be worked off in Q4 during the Christmas selling season. Regards, Archer