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VTSS Investor Forum

December quarter earnings (1Q FY 11) and conference call

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Here's hoping.
let's use this for comments for the quarterly report and conference call.

Posted by dlog - 14 years ago

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21

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What is overall headcount compared to last quarter and last year?

What are plans for headcount? adding or holding steady or reductions?? Why?

Posted by sstockss99 - 14 years ago

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Bad revenue #!

Posted by matt38 - 14 years ago

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Revenue at low range. Guidance is $36-$38.5 for Q2......better than I thought with all of CRG's caveats. Still on track for re-listing, though no more 'beat March 31 date handily' from Yonker. Gross margins are quite good. Gardner spouting a lot of platitudes as always.

WB loan refinanced. All debt not due until 2014......so no longer any near term financial holes for a couple years. Perhaps some stability is at hand. No press release for financials, only 10K. Yonker really stumbled on his opening statement.....did he pick a bad week to stop drinking?

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

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Well gents, it looks like business as usual for the mighty VTSS . . . another turd dropped on all of us.

Frankly, I am not sure why any of the long term bag holders on this forum shoud have expected anything different; I sure did not, but I am glad you guys still have faith.

The only faith I have is for CRG to produce less than average ANYTHING compared to the semi group. Virtually every semi company under the sun has put up good or great numbers, except VTSS.

I am thankful I do own a little MRVL @ sub $6, but not enough to take the pain away from this cluster fuck of a management team.

Back into my hole.

G

Posted by G - 14 years ago

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I don't even know what to say. I'm speechless. I feel that Gardner could have just said "At least we're not going bankrupt" to summarize the good news.

Where's GARIF? I need something positive.

Did Yonker just get released from isolation?

Posted by matt38 - 14 years ago

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While this wasn't good or great, maybe barely mediocre, it seems the results and call were pretty much in line with what PMCS, AMCC and MSPD reported, especially if you take the last several quarters into account as a whole.

I am not into delusions about 2012 or beyond revenue, but in the short term Vitesse is stable with a solid operating base. There is no longer any 'going concern' crap. I will never underestimate CRG or RY's ability to screw things up or willingness to delberately screw their shareholders. I hope they both get fired, or get hit by trucks, asteroids or such as it would cause a short term pop in the share price. Nonetheless, if these two hacks manage not to hose the re-listing, there should be a solid arguement that Vitesse, with a P/S of under 1, has some room to move up.

I will add that not putting out the press release until almost 5 pm strikes me as minor league.

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

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Altr – as you said, results and guidance for product revenue were very similar to MSPD – and they went up after reporting.

Q4-10 Q1-11 Q2-11

VTSS 41.6 37.6 37.3

MSPD 44.8 38.0 38.0

Posted by thereinman - 14 years ago

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They got the loan renegotiated and all debt could be eliminated by this fall w/o penalty. As of today, and maybe not by tomorrow, the price of the stock was greater than $5.85 which is the conversion call price. Were it to be above $5.85 in November 2011 VTSS could force conversion and eliminate all interest expense. that would be great. Not sure the stock price will accommodate however.

The break even point is coming down. That will really be great if and when revenue starts to reverse its 3 (or 5) year trend.

VTSS all but conceded that FY 2011 will be a down year in revenue. The first half will come in around $75 million which would mean the company has to hit $90 million in the second half to get to $165 million FY 2010 revenue. Not likely at this point.

Gardner specifically, in responding to a direct question, said management has a goal of getting to target financial structure ie $50 million in revenue per quarter etc. in the first half of fiscal 2012. That would be March 2012, to be reported in May 2012. (And when have they ever hit a target date?)

Admittedly the industry is not strong at this point. This company is run for the employees, vendors, and customers all of whom seem to be doing quite well.

i would expect a good number of the institutions to bail on VTSS. 12-18 months is an eternity in the investment world. Why wait when you can go make some money and come back next year.

Posted by dlog - 14 years ago

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sent an e-mail to Yawnker asking him to please familiarize himself with the quarterly financials before the conference call begins and to take a public speaking class.
unbelieveable,
f***ing unbelieveable.

Posted by christ3opher - 14 years ago

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Thx for #'s Reinman, I was going from memory, which is...ahhh.....

There have been new purchases of stock by Kopp and such, I don't see how/why they would bail (though Kopp undoubtedly ranks Vitesse among his worst buys evah!) and I will on a rare occasion disagree with Dlog here. The new 13g filings occured over the last several months, when it was common knowledge that the semi industry was in correction or maybe even another downturn. (We all hear the talk about 'data explosion' and such from everyone, yet quite obviously this hype doesn't match reality or otherwise sales would be going......ummmm.......up.)

So imo current non-BH'ers are buying and holding based on valuation and prospects. Vitesse actually came thru on a goal here, in that CRG/RY executed on paying down and pushing out the remainder of the WB loan. For the 1st time in a few years, Vitesse has no short term worries on non business items.

MSPD has ~20% in non core sales. Vitesse has ~6%, so Vitesse has a higher revenue rate of new(er) products. MSPD is also in the position of needing new product revenue having to grow faster to overcome the decline in non core. This is pretty much done for Vitesse.

I believe Satbob was the one who brought up stock sales as a method for raising cash. There is no reason for Vitesse not to be 50% higher, easily, after re-listing. Dlog mentioned conversion possibilty, there could also be a stock sale. BH'ers get bird in the hand with cash on remaining convert and still have their stock. New buyers are buying into a company that is now debt free.

I am somewhat optimistic here.

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

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The MSPD/ VTSS comparison is a good one. However it doesn't point to major upside potential for VTSS stock price in the near term.

MSPD has a market cap (2/8/11) of $230 million.

VTSS has a market cap (2/8/11) of $142 million using 23.8 million shares outstanding. But as soon, if ever, as VTSS reports a profit it will show 35 million shares outstanding. Using $5.96 per share with 35 million shares gives a market value of $208 million, within 10% of the value placed on MSPD. At $6.50 for VTSS the two are valued essentially the same.

Posted by dlog - 14 years ago

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All true Dlog, though an item to add to the mix in considering market caps is new product revenue.

MSPD is $38 million, ~19% ($7.5 mil) is non-core, leaving ~$30.5 million as a base to build on.

Vitesse is $37.5 million ~6% (2 mil) is non-core, leaving ~$35.5 million. So Vitesse has a >15% new product level to increase upon.

That I am actually comparing Vitesse to Mindspeed in revenue and trying to make it sound good is of course a disgrace in and of itself, and each and every one on the executive staff of Vitesse (except Perna) and the loser BOD members should be ashamed of themselves......but as you mentioned, they all get paid.

I will note that over 50% of the votes cast last month were 'broker non-votes', there is not much confidence in Hack Inc. from the suckers who actually own the stock and debt.

Think of where it could be if the investment community thought the people running the show were able to discern the difference between bodily orifices and holes in the ground.....and maybe Vitesse could hire those people.

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

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All over the map with this call. Cash was down $9M even BEFORE paying off WB; $3M to the SEC, $3M to their suppliers (even though they didn't work the inventory down one bit) and another $3M who knows where.

I'm still not happy with 27M in inventory, that about 4-5 months worth at the rate they are going. Too much risk of obsolete inventory building up. On the other hand, A/R is down, which means customers are still happy and still paying, including the channel.

WB is going to take 2M shares for $9M in debt - that's a real vote of confidence. That puts us at probably 38 to 40M shares when everything converts in 2014. Considering they hand out share compensation like it was penny candy (500,000 shares this quarter), the 2M was rounding to these guys (not to us, of course).

Probably can't pay the debt off before this year (unless they refinance - are you still working on it guys?), but by 2013 there will be no debt.

A B/E of $38M is pretty good, all things considered. At $50M of revenue your throwing off $20M+ in cash a year. We'd need a second Great Recession for this company to actually have going concern problems.

On the other hand, they'll actually decline in YOY revenue - pathetic. Well, semi-pathetic, as the drop is mostly from non-core. Still. But then there's those margins. They can't sell and they don't do capital markets, but boy can they create product and cut production costs. Sounds like a takeover candidate to me. Once we get to the May CC I don't want to hear anything other than what they are doing to get volumes up, unless they have a buyer at $20.

Posted by LMS - 14 years ago

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Just when the pps was starting to gain ground....another crappy qtr. I wonder if Vitesse would tell AMCC to go blow in regards to a proposed merger, like Tomasetta did a fews years back. I think his words were...." AMCC has nothing to offer us". Here we sit at .29 and about to go lower when the market opens tomorrow.

Posted by OKSPSNOW - 14 years ago

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The saddest part of today's event was yonkers performance, a sad reminder of his Vitesse career.

Positives: WB situation, gross margin goal, more than 10 tier-1 wins in the Q, the traction of our Big Cross point switches...
I don't expect deep selling but i do welcome some, so i can add for cheap.

peace

Posted by GARIF - 14 years ago

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Sounded like Yonker must have mixed up his meds or forgotten to take them. That was awful even for an accountant. (Sorry all you accountants out there). Once they get relisted, he needs to announce his retirement. Get somebody in that position with some spunk for godsake that sounds like he's half alive.

Posted by sharpinvestments - 14 years ago

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HI EVERYONE. I HAVEN'T COMMENTED UNTIL NOW ON VTSS REVENUES, BUT HERE GOES.

You see thye were short about $4 million in Revenue than what they actually did. I hope they learned this lesson. It cost them over $20 million dollar loss in Market cap. Chris G., having over 2 million shares, you just lost $2 million plus today in net worth. How does it feel? Now you know how we all felt the first time your predecessor created the fiasco. But gee, you're learning how to also do it to yourself. Good job.

UNrespectfully,
Grand

Posted by Grandpubha - 14 years ago

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Hi Grand,

I think the one item CRG/RY/Fast Eddie have learned is to milk this as long as they can and say whatever they can so they can continue to milk it. I would the chances of CRG making even 50% of his current salary somewhere else is about zero.

Posted by altrfan - 14 years ago

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Grand,

Where are you getting Gardner owning 2 mill shrs? i think you are using the old Yahoo numbers that were not adjusted for split.

Kjw9028

Posted by Kjw9028 - 14 years ago

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Maybe that was RY's last CC and he was just getting all choked up and teary-eyed about it.

Posted by LMS - 14 years ago

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It would come as no surprise if that was yonks, WAS NICE KNOWING YOU appearance! Relistment is in motion, after which they should bring in replacement.

Nice to see ALU doing real well... with our Chinese friends and Cisco having problems ALU and Ciena are heavenly news.

Peace

Posted by GARIF - 14 years ago

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