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VTSS Investor Forum

Five years of customer votes of "no confidence" finally starting to change?

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Our favorite semi-conductor's steady revenue decline over the last 5 years is due to the simple fact that customers have a choice. Great technology is only as good as the company that is there to support it. Let's face it, the VTSS black cloud was a great selling point for all of their competitors who were on solid footing. What the VTSS customers saw over the last 5 years was:
* A crooked regime that got caught cooking the books
* Numbers that no one could trust by their own admission
* Millions pissed away trying to get to the bottom of the mess
* Lawsuits upon lawsuits
* Bondholders circling like vultures
* Notes coming due with no certain outcome of avoiding BK
* A company that had to sell 1/3 of their business just to survive (remember the storage segment?)

VTSS competitors must have had a field day when they called on IBM and others when it came time for new opportunities to win business. What we've seen in this revenue decline is the result of targeted selling against VTSS over the last 5 years. If you were the buyer in 2009 and some Broadcom guy said you can go with us or stick with pinksheet VTSS that may not even be around in a year, would you have staked your livelihood on VTSS? I can tell you that as the buyer, I would have gone with the safe bet to protect my job. In this business, revenue gains and losses take years, not months based upon the whole design win process (and the following conversion of design win to revenue). So this is likely (hopefully) the bottoming out of customers taking eggs out of the VTSS basket over the last 5 years. Hopefully Perna has developed and been executing a strategy in his year on the job to combat these competitive sales strategies.

I still don't understand why they replaced a 60 something CFO (Yawnker) with a 60 something CFO (McWhatever), if a potential sale is not one of their top options in the next year or two.

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


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The Yonk move needed to be made, if only for the aesthetics...
Indeed competitors enjoyed a field day at Vitesses expense!!
I had hoped to hear 'we are starting to see profits from new products in this quarter' but the wait continues. lets hope Gardner is lowballing to the extreme with his 35 to 38 million projection.

SO WE WAIT AND............

Posted by GARIF - 14 years ago

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