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Gold/Mining/Energy : Tundra Semiconductor Corp -- Ignore unavailable to you. Want to Upgrade?

To: mariner who wrote (4)	1/23/1999 4:43:00 PM
From: Ron Schier	Respond to of 46

Old news story may help answer some of your questions 21 October 1997 Burgeoning chipmaker Tundra expects to go public this year Joanne Chianello The Ottawa Citizen Tundra Semiconductor Corp. is set to double its sales this year, to $22 million, with an eye to going public sometime in the next 12 months. Adam Chowaniec, president of Kanata-based Newbridge Networks Corp., told reporters following yesterday's private annual general meeting that the sales for the year ended April 30 reached $11 million, a year-over-year increase of 56 per cent. The company also continues to break even, Mr. Chowaniec said. "Our objective is not to make money," he said. What he means is that Tundra could well be profitable, but right now the company needs to focus on growing the business, not delivering big profits. So any money Tundra makes is put right back into the company, explaining Tundra's large research-and-development budget, a whopping 25 per cent of sales. The company doesn't expect any significant profits for another 12 to 18 months. Tundra, which has been formally incorporated for less than two years, designs and builds specialized chips that let semiconductors -- the basic engines for computers and an increasing number of other electronic products -- talk to one another. More and more products, from sophisticated communications systems to cars to printers and video games, are run by built-in, or so-called embedded, computers. Because the products vary so widely, the chips used aren't always standard. The computer board in a photocopier, for example, may need a bridge that lets the processor chip talk to a memory chip. Tundra designs and makes those bridges, although it outsources the manufacturing of the silicon wafers needed to make the chip. And according to the company, business is booming, with clients including industry bigwigs Lucent Technologies, Motorola, Bay Networks and Siemens. "One of the reasons we can be so bullish about the company is that the design wins can lead you to understand what the future business is like," said Terry Matthews, the head of Newbridge and the chairman of Tundra. Winning a design bid, while great news for the company, doesn't produce instant sales. A Tundra customer may decide to use the Kanata company's chip design, then take another year or two to develop the product around that chip. So, high numbers of design wins today may only indicate increases in sales far down the road. When those numbers materialize, Tundra, which has always said its strategy is to become a publicly traded company, may go to the stock markets to raise money. "But when your numbers are good enough at the company, you have to see what the market looks like," said a cautious Mr. Chowaniec, after being asked whether Tundra would be the next Newbridge affiliate to go public after CrossKeys. If the market isn't ripe, the company may very well go the private investment route, which has worked before for Tundra. In 1995, it raised $10 million in private placement and another $3.4 million early this year. The company is looking for acquisitions to fuel the growth in sales during the next year. In the past 12 months, the employee count has increased to 70 from 55. Any purchases made by Tundra, said the president, would be to acquire specialized talent needed for this semiconductor niche or to pick up a related product or technology. An additional board member was voted onto the board of directors at the private meeting yesterday. Michael Levis, a California-based technology veteran, was the ninth director elected, and the company hopes he will provide an important link to what's going on in Silicon Valley.

To: mariner who wrote (4)	1/24/1999 9:23:00 AM
From: Jim	Read Replies (1) \| Respond to of 46

OT -- PMCS in an RSP? "It's so hard to find Cdn tech growth stocks (outside of PMCS, JDS a few others)." Just wondering if you are holding PMCS is your RSP. I checked into this a while back and was advised that it wasn't eligible because it wasn't traded on a Canadian exchange. My advisor wasn't a pro or Revenue Canada.