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VTSS Investor Forum

imperial presentation

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Here is the short story of the presentation.

The $45 million target in revenue which was going to be reached by March 2012 has officially been pushed back to September 2012 . . . . but probably even further. The CFO said, in a positive manner, growth from FY 4Q 2011 to FY 4Q 2012 would be higher than 25%. Only problem is this september revenue will be $30 million and 25% growth over that is $37.5 million. Revenue of $45 million would be 50% growth over this September and apparently he was uncomfortable saying that. So there you have it.

Operational break even is now $32-$34 million.

Cash is below $18 million. But "we are comfortable with the level of cash."

My take is this management has no idea what the financials of the company will be, which has been the case for years now. It is the same old VTSS in that regard. If VTSS is lucky it will show flat or slightly up revenue for the full year 2012.

If sales weaken from here cash will be a big problem.

This stock will trade on industry and macro-economics. If the semis heat up I am hoping VTSS will at least participate. Other than that there is no reason to watch this daily or even monthly. There is nothing going on. I was hoping Gardner would come through this time but management has more than proved it has limited capabilities and no constructive vision.

Posted by dlog - 14 years ago

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thanks for the info dlog - -been on the road all day.

as to your last comments - mgmt has limited capabilities due to the fact that 3 of the top 10 customers are Chinese corps - all private i believe (huawei, zte, fibrehome). i'd say that even those corps have limited capabilities to buy equipment unless they get their budgets approved by a commisar.

and even the new ceo at hpq is probably putting some of their projects on hold for review. slowing is all over this sector - -and vtss might have even contributed to it by offering chips that could convert older server boxes to higher speed ethernet ports without a major purchase by plugging in a new board.

as to constructive vision - they are committed to lower power, faster devices, better data integrity (eFEC), and improved clock timing of data.

they have reduced their B/E to the low $30s but not below $30MM which many of us would love to see.

Posted by daWiley1 - 14 years ago

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Spoken like a true EE, daWiley1. I, however, have to wonder how many quarters they have left before the final flush?

G

Posted by G - 14 years ago

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