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VTSS Investor Forum

Show up and voice displeasure at shareholder meeting

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This record of broken promises has gone on way too long. Shame on us, the shareholders (bagholders) for not being more vocal in person. Management and the board both suck, plain and simple. They are incompetent, over their heads, and running a piggy bank for themselves. By the time of the shareholder meeting, it will be almost 6 years since this scandal first broke. Does anyone remember the first call hosted by Shawn Hassel of A&M after the scandal broke? After months of combing through the data they determined that revenue for the 3rd Q ending June 30 '06 was $60 million!!! That's twice was it is now. Meanwhile the stock price is down to about .12 pre-reverse/split, yet the company's CEO earns a fat bonus every year, the board members get their nice paychecks, options and perks, and here we the bagholders sit with little left of our original investments in this company, with disappointment after disappointment. To me it is worth a plane ticket and vacation day to go tell them they suck in person, and that the company needs to be sold or a new CEO be put in place. Who else wants to sign on? Let's go for it.

Posted by sharpinvestments - 12 years ago

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Unfortunately, they have what I call POP (position of power) and can have you escorted out of the building with a call to the local police. I truly believe this is a scam in which the mgt. feels that the employees are entitled to the company (after all without them Vitesse is just an empty building...according to the CEO) and that the shareholders are not really the owners, just people holding worthless paper, betting on the success of VTSS. This of course is the reason you have a Board of Directors, that can fire anyone that develops this strange idea and starts to steal from the owners. The scam is when the top mgt. and the board (hired by this scam artist) are in it together and both benefit financially from stealing from the owners. This company has been hijacked by management, and the SEC is allowing it to happen. With each year that passes by, the scam artists feel more entitled and less threatened by the SEC (see Madoff). I would love to see a 10 to 15 year sentence passes down to the CEO for his involvement.

Posted by OKSPSNOW - 12 years ago

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passed down.

Posted by OKSPSNOW - 12 years ago

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I haven't chimed in for a while, mainly because I have been in denial about what I now term as my "5 year mistake" (which is still staring at me in my portfolio). I am sitting here with a kidney stone and it becomes clear that I need to "pass both of these" and move on. Just to make my self feel worse I calculated that I have lost about $100k on this stock. (ouch!)

I don't see VTSS turning around. I think they have lost talent, market share and credibility. I don't know what will be left of this company in a year but I feel the vultures are circling.

I'm on the ledge. Somebody please talk me off or tell me to jump!

Posted by matt38 - 12 years ago

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I aired my displeasure in the last shareholder meeting, in fact i was the only one to question the sanity of the board; Their response all but guaranteed CRG's eternal employment.

For sure they've lost market share but my hope was that the vintage 2010 products would steer the ship in the right direction. Could the mega-30 be a flop??

lets not give Crg that satisfaction Matt, welcome back

peace

Posted by GARIF - 12 years ago

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GARIF,

I love your optimism and always have.

However, let me ask this openly to the wole forum. What is it that we can possibly expect under the current economy and current management to be positive over the next 12 months? Please don't answer this with, "Well, we can hope CRG falls down the stairs" or "Maybe somebody will buy us". I mean what is potentially on the horizon that could get us to $45 million in revenue per quarter? I can't see anything! I could justify buying into this stock as a deep value (and I mean so deep that the value is hidden at the bottom of the ocean) play but other than that we're trying to raise the titanic (or rescue what's left of the passengers). Please, feed with some granular reason to be optimistic.

Posted by matt38 - 12 years ago

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Hi Matt,

Nice to hear from you; I always liked your well thought out posts. If it makes you feel any better, I am down twice what you are. I am long past my denial stage, although I marvel at how long this turd has managed to keep its brain-dead head above water. I also can't imagine that there is any real design talent still left at the company; it's clear there is no S&M talent left, nor has there been for some time.

I am not sure which management regime was/is more corrupt, past or present? But one thing is for sure, the SEC could care less and current management knows it. As for CRG and the BOD, they are in a word, WORTHLESS, which is by design. Don’t expect any changes on that front.

I once made comments about wishing management some life altering diseases in their "Golden Years", for which I caught all sorts of flack. I still do, in spades mind you; they have shown me no reason to think otherwise of them. I would rather sit down to lunch and break bread with a smelly, homeless bum off of the streets than with any member of VTSS’s management team or BOD.

G

Posted by G - 12 years ago

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New 8K released today, November 16, 2011

Vitesse will hold its 2012 annual stockholders meeting on Thursday, January 26, 2012

I am making a serious attempt to attend this meeting

Posted by christ3opher - 12 years ago

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Oil just surged past $100! should serve as a reminder for companies to upgrade with some urgency, which benefits companies like Vitesse__ should help make the $45M per Q possible. IF, IF! there is some CREDIBILITY left...

Competitors have been licensing Vitesse formulas, perhaps they have retained some talent.

Christ, G, and all the rest of the bagholders do try to attend and strongly voice your disapproval__ collectively we just might shame the board into doing the right thing!!!!!!!!

I know Matt, my foolish optimism, but perhaps, just perhaps the board might do something.

Peace

Posted by GARIF - 12 years ago

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Here's the ytd trades on the convertible bond. I'm surprised that the transaction price last week was actually higher than in the previous month. Who would spend over a million dollars for the right to buy the stock at $4 when they can get it now for almost $2. The 9% yield is available with higher grade junk. Maybe it's some type of hedging strategy?

Issue: VTSS.GE Description: VITESSE SEMICONDUCTOR CORP Coupon Rate: 8.000 Maturity Date: 10/30/2014

Date/Quantity/Price/Yield

11/11/2011 1MM+ 97.000 9.178
10/04/2011 500000 92.750 10.846
06/16/2011 1MM+ 117.000 2.672
06/15/2011 111000 116.250 2.890
06/10/2011 189000 117.747 2.484
06/02/2011 750000 117.191 2.671
06/02/2011 1MM+ 117.000 2.725
06/02/2011 1MM+ 116.375 2.902
06/02/2011 650000 116.523 2.860
06/02/2011 1000000 116.000 3.009
06/02/2011 250000 116.704 2.809
05/27/2011 850000 116.250 2.955
05/26/2011 600000 116.250 2.959
05/26/2011 600000 115.750 3.101

Posted by thereinman - 12 years ago

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i know the stuff i been smokin is real good.

cause i am announcing that vtss has stopped circling the toilet bowl and finally served its time in equity prison.

i will state for the record - -go ahead vulture and quote me on Yahoo.

we have a power surge that is just underway.

historic low of $1.80, $ 2.12 = long term double bottom - - is now on its way . . . . .

to the greatest % return on the Naz over the next 24 months.

So - - if you want to try another ticker - -go ahead and post it before serving up turkey. cause vulture was just taken off the menu. no ticker, no turkey - -so post your favorite here. and i'll serve you a fine bird, stuffing, cranberrys and pumkin pie from the fields out in camarillo.

so sit on down to a pleasant Thanksgiving with Andy and LeRoy.
break bread with your fellow owners of Vitesse.
---------------------------

as to the meet. i have been twice. saw GARIF there briefly. might go to this one. i firmly believe that Gardner and co. are aware of us and will meet us again. or just go to the meet and you can talk to all the board, management and fellow share owners.


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i have only one message to give them. please find the lowest quarterly revenue scenario you can forecast. then keep expenses BELOW that number. if i use $25 MM per quarter as that figure (they might be using $30 MM) ; then, cut expenses below that number. the shareholders are now owed profits. it is now way past time for those gross profit percentages to flow to the bottom line.

andy and leroy - -as fellow shareholders - i ask for your help in conveying the same message to management that we ask of governments at all levels - -set a budget and stay within your means.
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you can plan for realistic revenue increases in the coming years, but please live within the reality of declining revenues. and it is not acceptable for you to miss the mark anymore.

Posted by daWiley1 - 12 years ago

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Kind of coincidental that they would announce the date of the shareholder meeting right after I posted this message. More up-front time means advance purchase discounts for all those who plan on going.

Posted by sharpinvestments - 12 years ago

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It's amazing to me that CRG has been able to survive this long- he's had plenty of time to come up with/execute a plan. Lots of design wins but nothing to show for it. Doesn't seem to be able to get any "traction" in his words. Maybe there needs to be an "Occupy Vitesse" movement.

Posted by Techinvestor - 12 years ago

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AMAZING to all of us TI!

Does anyone think that another reverse split is a possibility, for no other reason than: (i) to raise the price againg in the hopes of suckering in more "investors" and (ii) just to screw-over all of us some more, which seems like what the entire reason for VTSS's being?

Posted by G - 12 years ago

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Let's face it, VTSS has a lot of both operating leverage and financial leverage, which, on the plus side, if they get any traction at all, could cause much more of sales to fall directly to the bottom line than less leveraged companies, but in this market, most investors are more concerned with safety, as in low debt and a stable positive cash flow. The worst part of all this for VTSS is timing. They were counting on new products gaining traction, but if the economy goes through another implosion, and no one is buying, then there can be no traction for anyone. VTSS is in a very poor position to ride-out the storm.

Posted by phobos - 12 years ago

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VTSS is obviously hurting due to lack of operating funds as witnessed by the recent consolidation of Camarillo operations into one building and a layoff to save money. Their biggest drawback is poor & unimaginative management, whose whole world revolves around an old product line.

I think the saddest thing for the long-suffering shareholder is that no-one cares about VTSS, as witnessed by the volume in the stock, which is typically below average.

I wish we had more proactive major shareholders.

Posted by Techinvestor - 12 years ago

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TI - - are you a hardware specialist?? do you KNOW that vtss "whole world revolves around an old product line" ???

i think you better read their product catalog once again.
compare it to the AMCC cat - - do you know how much forward error correction of a 100 Ghz data stream is worth??

more than the current value of the entire company - that is how much.

low volume means no one is interested to buy - -but it also means that the 80% of shares that are tightly held by funds (30% by andy) are not selling.

as to poor management, the bondholder's have decided to let crg and mmcn play out this hand thru 2012 - - and they have until FY 2014 - so that is their choice. we'll see if crg wins internet design leader of the year in the near future.

as to lack of operating capital, the layoff and lease impairments are a very good thing for shareholders. vtss easily has revenue over $100 - 120MM in its worst case - -now cutting expenses to under their low line revenues is what every corp and government should be doing. vtss has the cleanest books and accounting standards in the semi sector. now if they will keep expenses under revenues - -we just might see those magnificent gross margins flow to the bottom line.

the delays are being caused by the big box makers trying to get this next round of speed and data increases, to new and evolving tech standards, as clean on the first product offering as possible.

the delay is causing sector wide slowing of sales for many carrier and enterprise semi chips which go into the new products.

please don't compare vtss to the entire lines of the huge semi corps that provide chips to cellphones, pads and even laptops. vtss competes and leads in its fields - -and it will be demonstrated in the next 3-5 years - -what will also be shown is that there is not one decent small cap semi anal cyst who covers the real game being played at the big box makers - -that is fine - -vtss survives because their chips are designed into the leading boxes that deliver internet data to the world. timing, synchronization, switching, error correction - all at lower power than their peers - -in elegant designs that vtss has always been known for.

btw, i just bought a sub $80 Goog Android pad with 4Gb - vs an iPad - just to see what you get in a wifi pad for so cheap --what you do get is a wifi data downloader that can watch youtube, nfl networks (not carried by cable ) and be a real data hog for under a hundred bucks - -this might not scare Apple, but it sure might be the impetus behind more server upgrades in the next 3-5 years - - cheap hand toys that allow us to watch our favorite porn while sitting in the proctologist's waiting room.

did i mention that i use the OBI-100 box for free phone calls nationwide with no phone bill and a Goog voice number -- a perfect implementation of carrier data over enterprise equipment as VOIP rapidly expands. i was a critic of the value that MSFT put on Skype - but i might be wrong - -mr. softy thought it was worth over $9 B -- and they just might be correct in a few more years - -we'll see.

Posted by daWiley1 - 12 years ago

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daWiley1- Excellent info on VTSS product line and industry in general. Hopefully this value of FEC/100 Ghz, etc. will not continue to go unrecognized by investors. I agree the cost cutting measures are warranted and a positive development.

I don't share major shareholder's patience with giving CRG another year, in your opinion, to turn things around. It's time for new leadership!

Posted by Techinvestor - 12 years ago

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