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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: schlep who wrote (6256)	4/19/1999 9:29:00 PM
From: kha vu	Respond to of 6565

VLSI Technology quarterly results exceed estimates PALO ALTO, Calif. (Reuters) - VLSI Technology Inc. on Monday reported better-than-expected first-quarter results as the maker of semiconductors for modems and cellular phones benefited in a broad rebound in the chip industry. The company, based in San Jose, Calif., said first-quarter profits before charges and gains slipped to $2.3 million, or 5 cents a share, from $3.2 million, or 7 cents, in the year-ago period. Even so, the latest result was better than the consensus estimate that the company would lose a penny, according to a survey of five analysts by First Call Corp. Revenue rose 6 percent to $149.6 million from $141.3 million. The better-than-expected results could help VLSI attract a higher takeover offer from Philips Electronics NV of the Netherlands, analysts said. Philips has indicated that its $17-per-share offer, valuing VLSI at $777 million, is a ''fair price'' for the struggling chip maker. The offer was announced on Feb. 26 In addition, VLSI said orders surged 34 percent in the first quarter from the previous three months and 43 percent from the first quarter a year earlier. Its book-to-bill ratio for the quarter was 1.2, suggesting sales are set to rise. A book-to-bill ratio of one means $1 dollar in orders for every $1 of product shipped. ''We expect business to continue to accelerate,'' said Alfred Stein, chairman and chief executive of VLSI in a statement. ''Second-quarter bookings look to be higher than those in the first quarter, and for the second half of the year revenues and operating profits are expected to increase significantly.'' VLSI stock closed down 63 cents at $18.63 on the Nasdaq after a session in which the technology-laced Nasdaq composite posted its second biggest declines ever. The stock has traded at or above $17 since the Philips bid was announced, indicating that investors expect a higher bid to materialize, analysts said. Including a $4.5 million charge related to defending the March 5 tender offer from Philips and a before-tax gain of $7.8 million for selling ARM Holding Ltd. shares, VLSI had first-quarter net income of $4.7 million, or 9 cents a share. 18:59 04-19-99 C

To: schlep who wrote (6256)	4/19/1999 9:41:00 PM
From: Richard P	Respond to of 6565

ebnonline.com a comment by Stein at end of article.

To: schlep who wrote (6256)	4/19/1999 9:44:00 PM
From: BWAC	Read Replies (1) \| Respond to of 6565

Ok schlep, let me put my accounting cap back on, from the press release income statement: We have income before taxes of 6,443. Add back the 4,500 tender offer expense, deduct the ARM gain of 7,625. We get operating earnings of 3,318. Figure in effective tax rate of 27% or 896, and we get net earnings from operations of 2,422. Divide by 50 Million shares O/S = .04844 Or 5 cents per share. Now the bad news. Within our operating earnings of 3,318, there is net interest income of 1,225 which means about 1/3 of the profits came from interest on their cash. Why is this, if the fabs are at full capacity? Does it have something to do with another excessive Al perk? New alarm system maybe?