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: The KOF who wrote (2622)	2/22/1999 6:16:00 PM
From: The KOF	Read Replies (1) \| Respond to of 3645

Well, Dan corrected his mistake.... He just didn't come out and admit it too anyone.... instead they put out a little "cover your ass" re-brief today... Synopsis: The following synopsis is qualified in its entirety by the more detailed information contained in the full research report, including the discussion of certain risks associated with an investment in this security contained in "Investment Risks." Research dated prior to September 1, 1998 was prepared by an entity that was acquired by BancBoston Robertson Stephens Inc. NeoMagic reported FQ4:99 EPS of $0.34, in-line with Street consensus, with a 1 cent benefit due to a lower tax rate than we had modeled. Revenues of $72.0 million were ahead of our $70.8 million estimate. Gross margin was at 39.0% vs our 40% estimate. Neomagic continued to show strong market penetration with an estimated 50% market share in FQ4. We estimate that unit volumes were up about 35-40% with a 7-8% ASP decline. The company expects systems to ship with its upcoming 3D product in Q2. The company also announced the acquisition of ACL , an Israeli company and Mitel Semiconductor's Optical Storage division. We believe that these acquisitions will position the company in the emerging DVD and camera markets. We are slightly reducing our revenue estimates for F2000 from $311 million to $305 million, with EPS unchanged at $1.36. We are adjusting the rating from a Strong Buy to a Buy, driven primarily by the change in analyst coverage.