Shareholder's Meeting

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i will report briefly on the meeting. i was late due to traffic west on the 101 - - so i missed the real meeting and call to order. i got there during a slide presentation that might be one already given at a prior conference - -not really sure - -- the tone was a bit different than last year --it was we are inside these boxes - -with pictures of routers - -and also how it fits into the network edge -- where VTSS has concentrated their efforts rather than the data centers where they have to go head to head with BRCM, MRVL and INTC.

an explanation of how I o T will incorporate things such as sensors in an oil field all thru switches to a concentrating router - -and how VTSS existing hardware most fits these tasks that don't need the sophistication of protocols used in the data center - -that is how VTSS was able to use existing switch engines and modify code to ship prototypes to their first I o T customers.

the slide show was replete with value comparisons to start-ups such as EZCH and a few others that are all valued more than VTSS but have less annual revenues. as i said -- shifting my collar - -VTSS gets no respect ----

the financials were the last items in the slides - -nothing there was new to us.

only ?s from one financial advisor and dW1 - -

a good one from the advisor asked about the make-up of hedge funds owning shares - - and answer was that they are very happy with Raging Capital and Rima - Senvest - -compared to others who were just here to flip a buck in shares.

i mentioned the Sprint, ALU connection and Sprint Spark capability - -i got Dr. Nuss to add that the ALU boxes indeed did use VTSS timing and were going to roll out with TDD - -or time division (same as chosen by China Telecom btw). the Sprint website says that 100 cities will be active in the USA by Nov. 2014. it seems that we only have the 1588 timing chip inside - -so maybe that is why they are not touting increased revs from this deal - - but Dr. Nuss did add as we all know that China Telecom has 600 MM subscribers (maybe even 700 - -Dr.!!)
ALU was selected for their LightRadio by both Sprint and China Telecom (maybe china mobile - -i get em mixed up). no real answer to when AAPL has a Sprint Spark capable phone - or what VZ or ATT are doing that is not shown on their websites - -

i tried to press on the debt - -didn't get too far -but i think they feel much better about the Convert A either making it to the $4.50 conversion or being able to manage a suitable outcome with a cash or share deal or maybe even a re-fi or partial re-fi. the financial climate is much better than the last time they needed to finance this anchor. and it is not in the interests of Raging Capital to put a monkey wrench in any deal - -as the entire Convert has only about 7MM shares inside with a fractional part owned by Raging Billy - - he has many more shares at risk if he makes it tough on VTSS. this is all my opinion.

i said that a home on my street that was never upgraded just sold for a record - -and i expect that my house which is in better shape just got a raise in valuation - -so how come if MSPD is taken out for a 66% raise above market - that our share price doesn't reflect the better product mix at VTSS right away?? why can't we get to 3 times trailing revenues and over conversion right now? ($300MM / 60MM shares approx = $5) his answer was that MSPD took a buyout at below the 52 week high and might have gone out of business in a year. which goes to my point - -we have better products, better prospects and are winning record design wins -- SHOW US SOME RESPECT when the semi index is at new highs. he said the message is a difficult one as most don't understand the technology - - it takes funds a long time to feel comfortable - most don't know where VTSS is in this new arena.

but there was an air of confidence that finally we will be able to show our stuff later this year. (the last two paragraphs are my opinion and vibe).

i am trying with this tome to convince Needhan and Hallum the bookrunners and also the only ones following VTSS as ANAL cysts that i know more than their boyz - -especially since the Krishna dude departed the scene - -btw - -how's that $3.50 call workin out for ya Hallum - - jr boy ??? we are $100 MM short on valuation on my block -- and i am tired of it - - - and that is on trailing revs and discounts that new product revs are increasing at 82% per year (from a slide).

we can keep this charade up for a while longer --but eventually - -these new product revs will increase total revs in 2015 - -it is all baked into customers and products that are to roll in our fiscal 2015. (again all my opinion -cept for the fact that VTSS knows more about the customers and the product mix than any of the market players do at this time - -the list of new customers was impressive - -including Samsung and many new and strong names in network security and servers.

to conclude - -i believe VTSS is Worth on a weight machine $5 and is worth $3.66 on a voting machine to paraphrase Buffet - -and i expect we have a date in the future with $10 -- the old $0.50 on the chart in the quarters to come. and i give no value at all yet to I o T -- --just the roll out of 4G-LTE/Advanced - -- - all my opinion of course


dW1

• i-o-t
• shareholder-meeting
• shm
• sprint-spark

Posted by daWiley1 - 12 years ago

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