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Technology Stocks : Spectrum Signal Processing (SSPI) -- Ignore unavailable to you. Want to Upgrade?

To: nord who wrote (2046)	12/15/1998 3:17:00 PM
From: ECAC Hockey	Read Replies (2) \| Respond to of 4400

Radisys(RSYS) is a direct competitor of Spectrum through its Sonitech DSP Division. Their latest earnings statement provides a baramoter for comparison of Spectrum's 38 Design-In's reported so far this year. Radisys, a $100M+ in sales company reported 36 in's for the same time period as Spectrum reported 38. The two companies definitions of an in-win is not identical but similar enough for rough comparison. Radysis has a $200M market cap versus Spectrum's $24M market cap. << << From latest RSYS income statement << "Our third quarter results reflect the ongoing effects of global economic conditions in the electronics market. As anticipated, our revenues and earnings were similar to those achieved in the previous quarter and in line with our expectations," stated Glen Myers, chairman and chief executive officer of RadiSys Corporation. "Looking longer-term, we had another solid design-win quarter, capturing eight new design wins. As this is the best barometer of our long-term health, we are very encouraged by the design win activity." The eight new major design wins in the current quarter bring the 1998 total to date to 36 wins. This surpasses the 32 design wins in all of 1997, with one quarter to go. Of the eight wins, one is in telecom, two are in manufacturing automation equipment, one is in an in-vehicle application and the four others are in a variety of commercial equipment applications. The company characterizes a design win as a project estimated to produce at least $500,000 in revenue per year when in production, although most design wins are considerably larger. Design wins ramp into production volume at varying rates; typically the ramp beginnings from 12 to 18 months after the win occurs. There are a variety of risks that could affect these programs before the start of production, such as schedule slippage and changes in the marketplace. >> If the Design-In figures that Spectrum is reporting are accurate, it is only a matter of time before the sales and earnings start ramping up at the target 40% + level. I think a lot of the new c6x In's of Specturm will move into production contingent upon TI's release of the low power model of the c6x in early 1999. This may lead to the type of contract news and earnings that will finally push the stock sharply higher.