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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: MMW who wrote (2183)	1/10/1999 12:56:00 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 4710

Mike and Suresha, Thanks for posting the conference call telephone number. The foward guidance from the call sounded very positive. The ATE market looks like it should pick up for them in the next two quarters. It looks like the analysts upgrades to the semiconductor equipment suppliers may be justified. The bottom of the RAM production cycle has been reached if VTSS can trust their customers guidance. Communications sales were up quite sharply year over year and quarter over quarter. They are concentrating on high margin sectors and avoiding low margin commodity sectors like chips for Seagate. They are running at only 1/3 capacity in their Colorsdo plant, so no large capital expenditure should be needed. Revenue capacity of the Colorado plant is 200 million if running at full capacity. The NT buyout of Cambrian might finally give them a NT design win to go their LU design wins. They picked up 20 designer with the purchase of V-Tech (?). DSO was in the mid-60's. Inventory turns is 5 times. One down note, gross margins were at 62 percent. They see themselves topping out at 65 percent if they were running at full capacity. It requires 10 million in additonal revenues to those already posted to get them a 1/2 percent point increase in gross margin. They still don't see any SiGe design wins of note. As an interesting aside they see the DWDM market being 2 years further out than anticipated by the market. They think that only the short haul market will require OC-192. OC-48 capacity appears to be sufficient for the long haul market from their perspective. Harry