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Technology Stocks : Semtech (Nasdaq:SMTC) -- Ignore unavailable to you. Want to Upgrade?

To: AreWeThereYet who wrote (676)	11/23/1998 6:07:00 PM
From: MileHigh	Respond to of 1225

I do not know the answers to your questions- I place my faith in my higher power- INTC- who controls 85% of the microprocessor market <g> MileHigh

To: AreWeThereYet who wrote (676)	11/23/1998 6:39:00 PM
From: Jeff Bond	Read Replies (2) \| Respond to of 1225

If you don't have anything further to ask ... I'd like a turn :o) MileHigh should be busy for a while with those excellent questions Andy; I think I'll use the opportunity to provide a summary of conference call highlights if I may. 1. Revenue & Earnings - $25.8M Q3 revenue - $83.6M YTD revenue - 12% sequential growth from Q2 revenue - $3.4M earnings, or $.22 per share vs. $.16 per share for Q2 2. Revenue mix - 42% North America - 12% Europe - 46% Asia (26% is US off-shore business) - 34% turns business (what company expects to see in future) - 48% computers & associated - 21% communications & associated - 17% industrial & ATE - 14% foundry & aerospace 3. Major considerations - Proprietary components make up over 56% of revenue & going up (WOW) - Company WILL have one 10.0% plus customer in Q4, can you say OEM? - 48.3% gross margin, up from 46.3% Q2, expect to add 30-70 basis Q4 - R&D really paying off (Glasglow, Research Triangle, Southhampton) - Generated $6M cash Q3, finished Q3 with OVER $30M cash (WOW) - Capital equipment outlay $1.4M, company desires to maximize ROE & ROA - Company plans to leverage capital to maximize operating cash flow - A/R DSO has been reduced to 50 days; inventory down $1.2M vs. Q2 - 100 days inventory on hand currently; backlog should reduce that more - Orders exceeded shipments for Q3; particulars are not disclosed - Comminucations power management good (network access, cell phones) - 130 new Q3 design wins expected to generate $34M annual revenue - Design wins 63% North America, 30% Europe, rest Asia - 1144 Multiphase product designed in conjunction with Dell is HUGE - 5 new systems by 3 OEM customers will use 1144; revenue due Q1 FY00 - 1144 is "reference design" for use in systems based on AMD K7 design - 48 new products in development, 16 hope to introduce, 40 in hopper - Hired 4 new circuit designers, total is 43, want 50 by end of Q4 - Working on Gallium Arsenide & Silicon Germanium products (hmmm ...) - 27 new design wins are NEW CUSTOMERS (outside sales efforts working) - Expect 10 new customers in top 30 customers, 5 in top 10 (WOW) - New customers are mainly the acquisition of MORE business, NOT loss - Revenue projections - FY00 Q1 & Q2 (+2-5%) Q3 & Q4 (5-8%) sequential - This appears to be CONSERVATIVE, assuming only moderate growth rates - Korea GOOD despite words to contrary; consider this your notice! - Utilization of fab capacity around 82%, 30% is being outsourced - Outsourcing fab may actually REDUCE lead times a bit in the end I hope this helps a little :o) I'm soooooooo excited about this company and what it means to my son's college fund I gonna go out and buy him (he's 9) a computer, which will allow SMTC to make another couple bucks .... LOL, I think I'm gonna be able to re-coup that money soon enough. Do it for the children ... Buy American ... Becasue we care ... whatever reason you want or need, it's time to buy some SMTC folks!!! Buh bye ... Rugrat regards, JB P.S. John, Rugrat regards is in reference to THQI, when you have a moment take a look at them, see how they strike you and what you think if you would please. Thank you. P.S.S. Andy, never mind my earlier comment regarding Mile Hile, he decided not to think after all, which in the end may work out fine :o)