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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?


To: Labrador who wrote (891)4/7/1999 5:48:00 PM
From: Robert Sheldon  Respond to of 2702
 
*Second, and more importantly, when I read the 10-K, I see that the company has a gross margin percentage of 55%, up from 1997's level of 52%. So the margin are definitely present. Take a look at their income statement, net sales of $18.1 M, gross profit of $9.96 M.*

Bravo . . .



To: Labrador who wrote (891)4/7/1999 6:08:00 PM
From: J Stone  Read Replies (1) | Respond to of 2702
 
Dogman,

Considering wireless phone usage in the US grew by over 30% last year and phones are give aways, the future picture looks bright. It looks even better when you consider that the fastest way to develop a phone infrastructure in underdevelop countries is with wireless technology as opposed to wired/fiberoptic. I believe sales of wireless phones in China matches that of new wired lines (just something I recall).

Given their backlog and existing clients growing appetites, profit margins should be maintainable with the growing output.

FWIW

Jeff



To: Labrador who wrote (891)4/7/1999 6:23:00 PM
From: iknowlarry  Read Replies (2) | Respond to of 2702
 
How many VCO's did they sell for the 18M in revenue?

I think they will have capacity issues with a few more contracts. The production line can only produce so much in a 24hr period. Right now they are not at 100 capacity, (50%?) They make good money, just not alot of it. To make money on low cost products volume is the key.

Also check the shares outstanding over the last three years, I believe they have increased thereby dragging down EPS.

regards,
Larry