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 : Neomagic Corp. (NMGC) -- Ignore unavailable to you. Want to Upgrade?

To: Mad2 who wrote (2502)	2/11/1999 9:26:00 PM
From: vincenzo	Read Replies (1) \| Respond to of 3645

Ok, so far with seven estimates in, the SI consensus is .39 - a full nickle over the street. We have a bunch of optimists on this board. (everybody must be long!) Dana - I've already tried that monkey trick, but it kept going up my nose and it burns like hell! There's got to be an easier way. Maybe next time I'll try using a cup! Mad2 - Neo does hedge it's yen exposure about a quarter ahead. At the last conference call they stated that they were hedged through the end of this quarter and about a month in to the next quarter. The Yen has gone against them some since then so there could be a stronger impact next quarter. I believe that Neo should be enjoying some volume discounts with their two foundries. I've also seen articles stating that embedded memory manufacturing costs have come down some as the process has been refined over time and yields improved. So as volume increases and time passes there are incremental savings, some of which accrues to Neo, that should help preserve margins even with yen pressure and ASP's declining somewhat. The margin on the 256 products are higher than the older 128 lines. The fact that the new 256 products have ramped up so fast (already over 1 million shipped) suggests that Neo has dodged the bullet this quarter and kept the ASP of their overall product mix at a healthy level. Also their ASP are affected somewhat by dram pricing and dram pricing has stabilized over the last quarter. Bottom line - they will beat estimates yet again. One of these days, hopefully, Mark Edelstone will figure out how to use a cup. vincenzo