Internet Explorer 6 is currently not supported. Please consider upgrading your browser to Internet Explorer 7. It's free.
Internet Explorer 7 Download

VTSS Investor Forum

Needham

+1
0 Votes
-1
Vote history graph

RY on Naz re-listing: should beat March 31 timeframe "handily".......wants WB debt taken care of before Feb 15 10Q filing.....

CRG commented on power usage for products, I forget specific ones, but that at each technology Vitesse tends to beat Brand 'B' and Brand 'M' (bcrm and mrvl) by about 20%.

Doing their best to absolve themselves for anything to do with a 20 cent share price. Apparently they had nothing to do with the fact that very few new products were produced during the 2008/2009 timeframe.

Vague comments on higher share price valuation to where peers are, CRG not keen on take over, I imagine he doesn't think he would be employed by a new firm.

A pretty good presentation, except for of course the share price.

Posted by altrfan - 14 years ago

Replies
10

+1
0 Votes
-1

I liked hearing that cash would be thrown down on some of the Whitebox debt.

Posted by christ3opher - 14 years ago

+1
0 Votes
-1

I wonder how many of us are already thinking like me? I didn't get to hear the presentation and so I am just going by what is posted, but I always "listen" to their words. The use of the words "should" by RY does not impress me. I can't begin to list all the things that 'should' have by now, BUT didn't. And the word "want"? We all want the WB think taken care of, BUT I would much rather see things like "we expect" or even (OMG) "will" be taken care of. Between Safe Harbor and shaving a word or a phrase these guys have killed us for years now - so should doesn't make it in my book. I always tell my folks, "It's not what people say - it's what they do" and these guys have a long track record of "what they do" - which ain't much.

Satbob

Posted by Satbob - 14 years ago

+1
0 Votes
-1

Lots of good questions after the presentation. Nice to see the interest and the pick up in activity toward the close. I even bought some more when I saw the improved action. I liked their confidence and timing on the senior debt and the NASDAQ listing. I liked their claim of “dramatically” better pricing, power and size on their new switches. And I liked their “pure play” position in the 10GbE sweet spot of the market.

But there seems to be a lot of shares available, probably from the 20 cent bondholders. It’s 7-8% for them and they can probably put the money to better use – and they still have the 22.5 cent conversion in case the company eventually goes somewhere. I hope we get some real investors after the listing to take out this overhang.

(By the way Altr, I like the way MSPD’s been acting after their warning. Did you see the volume spike in the June 7.5 calls? I thought the “M” referred to them instead of Marvell.)

Posted by thereinman - 14 years ago

+1
0 Votes
-1

I don't understand how you do 4X+ average daily volume +/- $.01?? Anyone care to explain?

Posted by Satbob - 14 years ago

+1
0 Votes
-1

Listening to CRG/RY talk about the share price reminded me of the old Monty Python 'Parrot' routine:

Investor: It looks dead
CRG/RY: No, It's only sleeping!

Vitesse needs to reach a point where investors look at the company and the future. Vitesse isn't at that point. I doubt with CRG at the helm they ever will be. LT, including his faults, had created value. Even 18 months after he left, Vitesse was able to sell the Storage biz to Maxim for 3.5x sales. Sales as of the September quarter of 2008 were $55 million. These were LT's sales, created with him at the helm.

CRG has only NOT created value, he has destroyed the value left over from LT. He alienated the largest buyer of Vitesse products, IBM. RY, in his 4 years as CFO, has been a failure, considering what he was hired to do. His strategy of throwing money at problems didn't work. At this point in time, investors still see that. There was nothing in the Needham conference that changed anything. I did think it was pretty good for looking at the future, but Vitesse hasn't convinced anyone they have overcome the last few years of destructive management, or that management has learned anything. Example of this was RY talking about beating the March 31 date for re-listing 'handily'.......with Mr. 8-12 Weeks standing right next to him, no irony there.....I mean with a company that bet the farm on 3 years of financials to get re-listed, now having 5 years plus of financials and aren't re-listed....RY can still say that with a straight face.

I certainly didn't expect much from yesterday, as Vitesse wouldn't spring out on news at a place right before their Annual Meeting (which CRG was probably against having, given his dislike for being accountable to shareholders and refusal of SH meetings in the past) and only hoped that somehow Perna would be the one talking.

Reinman, I sold MSPD at $6.94 on the news of miss (after they had already guided down once) I am bullish on them as a company, given that they have done what CRG failed to do. I do believe though, given the ~20% in legacy biz that is declining that will have to be overcome that with new product sales.....which unlike Vitesse they will do. But I think the share price will retreat from here because of that, and while it won't drop back in the $5.25-$5.70 range will dip near $6....because it can and there are plenty of people who think this could run into the mid teen's (MSPD has a decent reason to say they should be valued somewhere near PMCS or AMCC, where it rings hollow from CRG since he only valued Vitesse at 22 cents when he had the chance) over the next year or two and they would like to add up at a lower price than today. Time will tell.

Satbob, I see it about the same way you do. Perhaps some of the sales volume yesterday is the same phony volume we saw last spring from BH'ers trying to pump the share price up.

Posted by altrfan - 14 years ago | Updated 14 years ago

+1
0 Votes
-1

Looks like the parrot squawked...Polly wanna higher share price? Very good but not all world volume either. As everyone knows, I have been a long time supporter of CRG. He obviously made a good impression on everyone yesterday that his hard work, vision and all around honesty, traits I have been extollng for several years now are starting to pay off.

Good Job Chris......

Posted by altrfan - 14 years ago | Updated 14 years ago

+1
0 Votes
-1

When Gardner said they substantially beat last Q with 2 weeks left in Q was he referring to design wins or revenue? Sounded like design wins to me.

Posted by sharpinvestments - 14 years ago

+1
0 Votes
-1

Yes he was talking about design wins when he said: "with a couple of weeks to go we already substantially beat the prior quarter".

Sounds like they're willing to bring their cash down to $17M to pay of some of the senior debt and refinance on better terms. Can anyone tell me what interest they are now paying? I can't decipher this:

"From and after October 16, 2009, the effective rate will be 8.5% per annum in cash, plus 2.0% payment-inkind interest, plus an additional 0.3% payment-in-kind interest for every $1 million below $15 million of the senior term loan under the Loan Agreement that is not paid down by the Company. After the required pay-down of the senior term loan, the Company has the right to reduce the effective rate of interest by 0.3% for every $1 million of additional prepayment."

Posted by thereinman - 14 years ago

+1
0 Votes
-1

The current rate is 8.5%.

Posted by matt38 - 14 years ago

+1
0 Votes
-1

Yes! he speaks of all the GREEN DESIGN WINS that customers are lining up for. The beauty of having the best mouse trap is that you can charge a little more instead giving discounts(begging). Like the man said "we are the only vendor providing pre-production silicon devices that fully support the newly ratified IEEE 802.3az standard"

Posted by GARIF - 14 years ago

Leave your Reply

Login or Create an Account to post reply.