Wednesday June 23, 3:06 pm Eastern Time
Company Press Release
MasonCabot Announces Investment Opinion on V3 Semiconductor, Inc.
MasonCabot Initiates Coverage on V3 Semiconductor, Inc. (VVVI) with a BUY Recommendation
NEW YORK--(BUSINESS WIRE)--June 17, 1999-- Mason Cabot, a division of Coleman and Company Securities, Inc., the New York-based investment banking and brokerage firm, has
initiated coverage on V3 Semiconductor, Inc. (NASDAQ Small Cap: VVVI - news) with a ''BUY'' recommendation. In a report dated June 15, 1999 by analyst Christopher Moore, Mason
Cabot recommended the purchase of V3 common stock and set a twelve month price target of $13.
Toronto-based V3 is a fabless semiconductor company. V3 develops and supplies solutions that accelerate and manage the transfer of data in high-performance embedded systems such as
cable modems, set-top boxes, Internet appliances, etc.
V3 Semiconductor, Inc.
VVVI (NASDAQ) 6/15/99 $6 1/2
52-week Range: $9 3/4 - $2 3/4
Shares Outstanding 5,527,496
Diluted Shares 6,097,984
Est Float 2,900,000
Market Capitalization $36 million
Book Val/ Sh (3/31/99) $1.01
LT Debt Nil
Rev Diluted
FY Sept ($ Mil) EPS P/E
------- ------- --- ---
2000E $15.0 $0.52 12.5X
1999E $7.1 $0.06 108X
1998A $4.0 $0.03 220X
1997A $2.2 ($0.03) NM
Suitability: Risk Oriented Investors
Leader In Embedded Systems Controllers and Bridges. Embedded systems consist of a microprocessor and necessary companion devices, incorporated within larger electronic
products. Embedded systems refer to non-desktop systems and are found in such products as cable modems, routers, switches, set-top boxes and other networking or Internet
appliances, fax machines, printers, video servers, mass storage controllers, etc. V3 provides silicon bus control, memory and system control co-peripherals to leading embedded RISC
processors manufactured by the dominant CPU companies.
RISC Processor: Reduced Instruction Set Computer: Intel i960, IBM & Motorola Power PC, Hitachi Super H, MIPS
CISC Processor: Complex Instruction Set Computer- Intel 386, 486, Pentium, AMD K6, etc.
Three Areas of Core Expertise. V3 has three areas of expertise: memory controllers, system controllers, and input/output (PCI) bridge controllers. V3's products are important to its
microprocessor strategic partners (Intel, Motorola, IBM, Hitachi, IDT, QED, TI, etc.) and its end-users as they enable embedded RISC processors to directly and efficiently couple to
memory and peripheral input/output (I/O) devices.
Over 300 design wins. Design wins are the best indicator of future revenues. It is the first milestone that leads to a production win and subsequent revenues. The number of design wins
has tripled to over 300 compared to 1997. Because the cycle from initial design win to meaningful production revenues is typically two years, the momentum V3 is experiencing today
will likely not be fully evident until fiscal 2000. Significantly, many of the most recent design wins are for products with the potential for very high volume orders - cable modems, set-top
boxes, xDSL modems, home networking and Internet appliances, Auto PCs, etc.
Recent Small Cap NASDAQ Listing. While V3's products and engineering capabilities are well respected in the industry, its recognition on Wall Street is very limited. We see this
changing over the next year as sales begin to ramp and more importantly as its strategic positioning becomes better understood.
We Recommend Purchasing V3 at Its Current Price. Our 12-month target price is $13.
Contact:
MasonCabot, New York
Christopher Moore, CFA
212/742-0100 |
