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VTSS Investor Forum

Perna has resigned

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Gets $7K a laptop and cell phone - oh oh?

Satbob

Posted by Satbob - 12 years ago

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39

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This is a very important position at Vitesse presently.

interested to see who the replacement will be.

Posted by christ3opher - 12 years ago

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Why?

Posted by phobos - 12 years ago

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This is a MAJOR item - from the "tone" of this filing this was a very abrupt departure and not a very friendly one. Our VP of Marketing (who everyone on this board touted so highly) has abruptly left - whatever the reasons, it can not be good. Who did he clash with and about what? What shoe is going to fall now? For a Company with such a bad track record this can not be a good sign. Big boys say, "I am leaving at the end of the year" or something like that - not, "FU, I'm out of here".

Satbob

PS - Anyone out there from VTSS would like to share anything it would be highly appreciated.

Posted by Satbob - 12 years ago

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He either quit or got canned. Neither one is a particularly good sign. The fact that they're giving him anything would leave one to believe he was let go. I don't even know what the VP of Marketing would do in that company. They have a another guy who is VP of Sales and I think he is still around (though he has never shown up on the executive management team bios on the website. I think his name is Phil something or other). Before Perna there was another VP of Marketing (Italian last name as I recall) who quietly went away. Anyone happen to notice in the quarterly filing that Huawei doesn't even show up as a top 10 customer in the quarter. Shows you what's going on in China, as they have been their top customer for quite a while. I still believe that the only long term solution in this chip space is massive consolidation. All these little bit players who claim to have the most cutting edge, fastest, energy saving yada yada products, yet none of them break out of the pack. They all continue to get dribs and drabs. They won't consolidate because the management teams and boards make too much money by keeping them independent, meanwhile the shareholders get screwed over and over. We need more activist shareholders like old Bob what's his name to come back into the picture.

Posted by sharpinvestments - 12 years ago

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Product marketing, depending upon how the position is defined, can be very close to that of CTO. I wonder if Perna's position was gradually eclipsed by Nuss, which is pure speculation on my part, and might be the best case scenario. I wonder what this will do to the share price Monday morning.

Posted by phobos - 12 years ago | Updated 12 years ago

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I recently checked Yahoo's profile and Louis T. is listed as:

Dr. Louis R. Tomasetta Ph.D., 64
Co-Founder

Is he coming back?

Posted by scam_artist_ceo - 12 years ago

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This seems to have made no difference what-so-ever to the share price, so I'm going to assume that it was the best case scenario of Nuss being phased in and Perna being phased out, and either Perna saw the writing on the wall, or job descriptions and egos kept both from holding positions at VTSS. I must say that I prefer Nuss. He formerly worked for Ciena, which is likely a customer. The old VTSS was a little too incestuous in terms of being run by semi types only.

Posted by phobos - 12 years ago | Updated 12 years ago

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Well, for the record, and i think my prior posts confirm, that I NEVER thought much of the guy, and assumed that he was "dead wood" or some cast-off from the dotcon days that could not get hired anywhere else. What "hot-shot" VP level of marketing from the semi industry is going to take a job at VTSS?

Posted by G - 12 years ago

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If you could divide the bull and bear arguments for and against a long position in VTSS, the basis for that division might be systematic risk vs. unsystematic risk. The unsystematic risk argument is one of good products coming to own an emerging market and the systematic risk argument is that VTSS may not be in the best financial shape or current market position to withstand the onslaught of macroeconomic vissicitudes. VTSS also occupies a very crowded market segment. The answer is that VTSS may do very well if it can weather the storm, but the question is, "Can it weather the storm?" If you make the best product ever, and no one buys it, for whatever reason, do you really have a business? I think as far as VTSS is concerned, it is better to buy on the news and sell on the rumor. It is not clear to me how to evaluate VTSS as a potential investment. There are just too many moving parts both internal and external.

Posted by phobos - 12 years ago | Updated 12 years ago

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VTSS announced their "Supplier Excellence Awards" today- TSMC and ASE Group. Wow- Now this is a prestigious award that I'm sure they will display in an "appropriate" place.

It is tough to value this company. One thing's for certain now is buyers aren't motivated to buy the stock- down another 8 cents today ($ 2.34).

There is one indisputable fact though- we have proven horrible management (i.e. CRG) that large shareholders/the Board is unwilling to change!!!

Posted by Techinvestor - 12 years ago

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In my humble opinion Tech, I think the supplier award was to get the notice of Perna leaving as far down the news cue as they could as quickly as possible.

Posted by phobos - 12 years ago | Updated 12 years ago

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Phobos,
Anyone who has purchased this turd in say the last 10 years has lost their ass on it. This thing is ANYTHING but an "investment" . . . it has been nothing short of a financial black hole. As for this chips being cutting edge, I seriously doubt it, otherwise sales would not be where they are at.

Posted by G - 12 years ago

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Phobos,
Anyone who has purchased this turd in say the last 10 years has lost their ass on it. This thing is ANYTHING but an "investment" . . . it has been nothing short of a financial black hole. As for this chips being cutting edge, I seriously doubt it, otherwise sales would not be where they are at.

Posted by G - 12 years ago

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G, you are a student of history.

Posted by phobos - 12 years ago

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G:
This board has certain standards that I simply will not allow to be violated. Ending a sentence with a completely redundant preposition is just plain beyond the pale.

"Otherwise sales would not be where they are AT." Ouch that hurts the ears.

"Otherwise sales would not be where they are." will do nicely.

Any further open assault on the english language is the type of abuse up with which I will not put.

(Winston Churchill once chided the grammarians about their distain for ending a sentence with a preposition by saying. This is the type of pedantry up with which we will not put. )

Other than that you are pretty much right.

Posted by dlog - 12 years ago

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Hi guys!

Speaking of prepositions, of which I know little.....other than an oldie but still good.

The young engineering prodigy from Georgia was at his first day at Harvard. He spotted two students chatting, walked up and asked "Howdy, Could y'all please tell me where the library is at?"

One student replied "At Haavahd, we don't end our sentences in a preposition." while both students smirked.


The Georgia boy looked at them a moment, smiled, then said to the first "Could you please then tell me where the library is at, asshole?"

Posted by altrfan - 12 years ago | Updated 12 years ago

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Down and down we go- $ 2.30/sh. Looks like retest of $ 2.08 in the cards. VTSS silent except "Supplier Awards & Perna Resignation".

Posted by Techinvestor - 12 years ago

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Guys, sorry for the assault on the English language . . . I was a latch-key kid from the time our family moved from NYC to Miami, and the public school system in Miami - even in the 60s — was not that great. Factor into the equation that I was a pot-head during my teen years AND the fact that I have had a number of bad cycling related injuries, followed by a bunch of long surgical procedures under general A, and we have the situation that we are all dealing with on this board. I promise to do a better job of proofreading my posts before hitting the submit button.

Posted by G - 12 years ago

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The English language is the least of our problems! VTSS down again (5 cents- $ 2.33/sh) on anemic volume (5k shares).

Our problem is nobody cares about this stock, with our mute management not helping the situation.

Posted by Techinvestor - 12 years ago

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Tech:

If I remember correctly VTSS has 2 or 3 presentations in front of institutional investors within the next week. We will get a good read on how compelling the story is. I am not expecting much I will admit.

Posted by dlog - 12 years ago

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dlog- That may help if they can present something positive. I think they also need to replace Perna ASAP, to show they are actively marketing products in concert with a business plan.

Posted by Techinvestor - 12 years ago

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AMCC presented at Stern Agee this morning. AMCC said again they will hit $63 million in revenue by March next year. The march just reported (2011) was $49 million and June guidance is $40 million. Amcc off today $.12 at $5.11 per share. With the exception of 3 days last august this is the lowest price since March 09. (3 years) The presentation hasn't done much yet.

Posted by dlog - 12 years ago

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So, if we extrapolate, which is all we can do at this point, the average P/S for AMCC (1.41) and MSPD (0.94) is about 2.5 times VTSS' current P/S of 0.47. Dilution upon conversion, I think would bring shares from 25M to around 40M. If VTSS' projections are similar to that of AMCC, then VTSS could go from $30M to $48M (?!?!) in the same time period. I'm getting approximately a north-of-conversion price of around $5.85 ... provided AMCC's estimates are not delusional, VTSS at least tracks AMCC revenues, and extrinsic factors, like the immanent implosion of the Euro doesn't effect things. $5.85 by this time next year? Thoughts?

Posted by phobos - 12 years ago

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Phobos:

The current P/S ratios are in an environment of sales decline. If sales start to expand and particularly if they expand at a rapid rate the P/S ratio will most certainly go up. Unfortunately, you have to go back a few years to see a P/S ratio that was pretty common in this industry in the 3-4 range. Put that on quarterly sales of $45 million (annual of $180 million)and you end up with numbers like this. 180 X 3 (the assumed P/S ratio) = a market cap of $540 million. $540 divided by the number of shares outstanding of 40 million gives you a stock price of $13.5. It is not hard to make assumptions that result in a share price higher than that but we are already deep in the land of fiction and don't really need to go deeper.

Posted by dlog - 12 years ago | Updated 12 years ago

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Oh, I agree dlog, this is definitely speculative. During the bubble years a P/S of 4 (I think, back in the day, VTSS' was around 6! at one point) was not unheard of during that time. I have not factored in any growth premium.

Posted by phobos - 12 years ago

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Gents,

May I remind all of you that it was the art "extrapolating" VTSS with respect to its peers that got all of us so far underwater with this turd that even if we come up for air it still smells like a cesspool . . . just saying. If you want to toss more money at this "management" team, by all means don't let me stop you.

Posted by G - 12 years ago

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I agree.

Please don't construe my little valuation exercise as a bullish endorsement. The potential for upside appreciation is more than offset by VTSS' risky financial and market positions, so while there is a chance of high appreciation, there is also a diminished chance of achieving that high (or any) appreciation. Hence, the current low valuation by the market. In fact, much of the upside depends upon VTSS being able to extricate itself from a burdensome debt in the next year or so, and securing for itself a defensible market position within a very crowded market. What if they need to refinance yet again, and Whitebox winds up owning the whole shebang? VTSS is definitely a stock to buy on the news, but sell on the rumor, given its terrible shareholder relations record and its officers who answer for nothing and to no one. Just ask that pr*ck Lou.

Buy on the news, sell on the rumor. There are some faint glimmers of hope, but I really haven't seen any news yet. The jury is still out on VTSS and its ultimate fate.

Posted by phobos - 12 years ago

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How about " Dead Man Walking". With the ultra-competitive chip marketplace and TOTALLY incompetent management (CRG), it does not bode well for shareholders.

All of us, including myself, will probably fall into this value trap again in the future.

Posted by Techinvestor - 12 years ago

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Putting this in perspective ...

Lou was an alum of bell labs and was good at making fast chips from exotic materials. VTSS' fabrication process is what added value and was the competitive moat that VTSS held against its competition. Other companies either had inferior processes, or were relegated to making lower speed chips in Si instead of InGaAs. Then, along cam IBM with a new material, SiGe, which enabled high speed chips to be made with a process similar to that used to make low speed Si chips. VTSS' competitive advantage evaporated overnight. Lou being a techie probably didn't have a firm grasp of what was happening (in addition to being a sociopath), held things together for as long as he could, while competitors at AMCC, PMCS, etc., became expert at addressing markets and became fabless. By early 2006, Lou could no longer juggle the books by channel stuffing, so the whole mess imploded.

Today VTSS is becoming market driven and is trying to outsource everything that doesn't involve areas where they add value or areas where they can simply not outsource. They are in a precarious financial situation relative to the competition as a result of Lou's financial shennanigans. Their market is admittedly extremely crowded and due for a shake-out. I think the best case scenario going forward is that VTSS catches enough of the rising tide of the 4G LTE wave to get it above the share conversion strike price, and someone buys VTSS for its technology, talent, or just to consolidate the market, shortly thereafter. They will not be able to compete against MRVL and BRCM, despite the delusions of grandeur harbored by VTSS' board.

I will be watching the telecom and internet service providers for an up-tick in demand, the follow-on up-tick in demand by telecom equipment providers, an up-tick in demand from VTSS' customers, and finally a healthy up-tick in revenue at VTSS, relative to the competition (gain in market share), by the end of this year and into next year. This is even what VTSS (Mr. Gardner) said they were expecting to happen. Without the "news", VTSS is on the radar as a company whose value could substantially appreciate, but it is NOT a "buy" until its considerable risk is reduced.

Posted by phobos - 12 years ago | Updated 12 years ago

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Thanks for historical perspective and overview of competitive landscape phobos.

$ 2.21/sh now. Hell, VTSS can institute a stock buyback program from their coffee fund and be able to make significant purchases!

Posted by Techinvestor - 12 years ago

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Perna was fired.

http://finance.yahoo.com/news/vitesse-redefines-industry-feature-set-000000453.html

He was replaced without skipping a beat by Harpreet Chohan (director of product marketing). Maybe we'll have a product or technology press release more often than once every other month.

Posted by phobos - 12 years ago | Updated 12 years ago

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No brainer for CRG. Give Chohan VP title and no raise (Just worthless stock options) and he's saved another salary.

Maybe he could use this technique in other areas.

Posted by Techinvestor - 12 years ago

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WOW- VTSS stock is up 1/2 cent today! It's become so pathetic I get excited when the stock is up a few cents.

Boy- What a change from the "Old Days".

Posted by Techinvestor - 12 years ago

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1,300,000 shares today. I can't even imagine that there were that many shares available today. Didn't move the stock - apparently just someone "getting out" and someone else "loading up". Bottom line - somebody hates us and somebody likes us.

Anyway, I have a new way of looking at things. Instead of waiting for my ship to come in - I now consider that I took most of my retirement account and purchased part of a nag named "Speed". A real dark horse - 15:1 at least. Seems like he's been in training forever, but still is having trouble "getting out of the gate". Some folks continuing to say this nag has a lot of potential and someday is going to 'bring it home", but right now all I have is part of this horse - maybe my part is the last part into the gate. Anyway, that's where I am. That's my story - if it ever comes in it will be a more interesting story than I had to hold some stupid stock for years and years to make any money - not a good nor interesting story.

Satbob

Posted by Satbob - 12 years ago

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What a great funny analogy Satbob! Let's hope "Speed" lives up to his/her potential before being put out to pasture.

We STILL can't get a new Trainer/Jockey - that's the major problem!!!!!

Posted by Techinvestor - 12 years ago

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Yesterdays big volume was a precursor to todays volume ( 1.12 mil)/action ($ 2.37: up 17 cents). This is huge for VTSS.

Let's hope the interest in the stock continues.

Posted by Techinvestor - 12 years ago

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"AND THEY'RE OFF" - Let's hope.

Posted by Satbob - 12 years ago

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Are the "big boys" finally buying-in after all those "dog and pony" shows?

Posted by phobos - 12 years ago

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