From FTF: "Application examples for the T4240 device include metro carrier edge routers, access gateways and aerospace/defense products. Freescale will provide more details regarding the T4240 product later this year. The device is planned for initial availability in early 2012."
This will explain why FSL will continue to follow the trend of CIEN, TLAB, PMCS (among others) down... Same tired segments, same tired message, new soon-to-be-tired architecture.
Oh yeah: the other "news" is the annual statement of re-affirmation by QNX and Wind River pledging allegiance to "love, honor, and hold" FSL forever, amen. Yep, real growth strategy here (lol!).
... to help Blackstone dig itself out of the hole it made when it acquired Freescale? Haven't you already bailed out enough bad companies as a U.S. taxpayer without being cajoled into actually buying another poorly managed company's bad debt?
Where did you read that they were execs? I've seen them described as "employees".
On Saturday, Texas-based Freescale Semiconductor confirmed that 20 employees were passengers on Flight 370. Twelve are from Malaysia and eight from China, the company said.
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employees being issued shares would be a form of a bonus, would it not? Could not the employees buy shares in the open market? Freescale is in debt, we finally got meager pay raises after nothing for 2-3 years. No one was expecting free shares! They are however coming up with an purchase plan for 2012. Not that I care...
I don't know how they are valuing the market cap, or the private stake for that matter.. The offering was small as you said, but from what I read, Blackstone still holds what they held, minus some portion. I mean, it's not like they got rid of the debt, Blackstone is still on the hook. They can still get screwed if the economy doesn't pick up big time (which we know isn't going to happen). I know that sometimes Yahoo shows a market cap that is smaller than what it should be, due to different stock classes (LODE, the Comstock metals company, is like that).
If one goes beyond reading the headlines and actually starts doing the math, it will not get a nice picture.
Ok, so FSL took 883 mil $ from the stock market (49067 K shares x 18$). What happened with those? The equity (total assets - total liabilities) decreased by only 675 mil $. The rest is money/equity lost by the shareholders.
From another perspective, look at the cash flow. It is all negative, -150 or so mil $.
In terms of operations, FSL had 135 mil $ net income (excluding amortization from GAAP expenses). So what? It had to pay -151 mil $ interest on debt, -42 mil $ fees for IP.
Bottom line, another quarter of loosing money from the company to serve a crushing debt that will keep FSL locked for many years to come.
Networking business has no growth, cellular is falling fast, microcontroller and sensors went very well indeed but they will become softer next quarter.
How does Freescale only reap $733 million from the IPO and yet the market cap is 3.6 billion? They must of issued a sload to current management? They issued zero to employees. Maybe Rich's true colors are about to be exposed!
The design site in Israel is significantly impacted: between 100-200 people will be fired out of 500 currently.
900 people in total will loose their jobs. Most likely the Cellular division will be completely closed and some people from Austin will be terminated.
And actually what I think triggered the short covering in the last couple of days is the restatement of a flat next quarter, or as it was said "marginally sequentially growth". Some thought that FSL will show a severe weakness. But they will have to wait a little.
Yeah, they would never use Freescale again. We never kept our promises to Apple when I was there. Terrible yields, never on time... Sad how Motorola gutted the company, sold them off and then they got screwed again by the holding company. Motorola was actually a great company at one point but its ruled by ass kissers and sycophants now. Its just a matter of time before they go in the shitter. They must have some long term automotive contracts because the place should have shuttered a long time ago.
Long term debt was at 1 Jul, at $6.6 bil. Only the principal is the $5.2 bil.
"enourmous revenue stream"? Why don't you look for net income? After all, that will be the source of your bond interest?
I know that in the case of a leveraged buyout LBO as FSL, it is more difficult to interpret amortization of goodwill when the investor purchased the company on the open market and passed the debt of the buyout on the balance sheet of the same but now private company. But, the numbers are there, in the tables provided by FSL. Some do not consider that the goodwill of their own buyout should be an expense. But GAAP says it is.
The net cash, excluding amortization expenses (all of it, real asset or goodwill), is like this, in the last 6Q in mil, -60, -13, 16, 19, -40, -16. You may wonder why this numbers? Simply, because FSL must pay debt interest in mil, 153, 154, 148, 145, 148, 151. All Q starts from 1Q10 to 2Q11.
And guess what. FSL announced that Q3 will be 6-8% lower than Q2 in revenues, compared to flat earlier estimates.
So, FSL can hardly pay debt interest. It is hard to imagine how it would pay the principal. Unless they are waiting for a semiconductor bubble on the stock market to sell their stock.
A long time ago, in a galaxy far, far away....
Motorola made a decision not to cater or sell to Mom Pop shops or small potatoes. That decision still seems to exist at FSL. It is absolutely the worst decision ever made by Motorola or Freescale or for that matter, any company on Earth. They need to nourish and support todays babies for tomorrows potentials.
Nevermind, FSL is as F'Ked up as Motorola
was. I hope they go broke.