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 (4746)	10/21/1998 10:09:00 PM
From: DanZ	Read Replies (1) \| Respond to of 6565

Hashem, I listened to the conference call but don't recall the company giving any specific guidance with respect to G&A expenses. Maybe somebody who remembers can verify this. Mona from Gruntal asked the most questions about costs and revenue. Stein said revenue would be flat to slightly lower than Q4 and if I recall correctly, he said R&D would be at about the same level as Q3. R&D has been fairly stable at about $26.5 million for the past three quarters and I would expect it to be about that much for Q4. My guess for G&A is 16.5% to 17.5% of sales depending on how high sales are. If sales are in the $135 million area, then I would expect G&A to be about 17.0% of sales. If sales are around $130 million, then I would estimate G&A to be 17.5% of sales. I hit the Q3 earnings on the nose but the stock didn't react well because both DLJ and S&P lowered their 1999 earnings estimates when they came out. With flat revenue growth, my estimate for Q4 would be 3 cents. I estimate that VLSI's break even point is about $125 million in revenue. Despite what Stein said, I'm going to predict that Q4 revenue will increase 3% from Q3. Based on this, I estimate that VLSI will earn 6 cents this quarter. Let me know what your estimate is after you plug in the numbers. Thanks, Dan PS: I'm long again at 9 3/16 and also flipped it once today from the long side...in at 9 3/16, out at 9 3/8. What a way to make a buck lol.