This is absolutely BS:
""Because our products are highly complex, it takes our customers 12 to 36 months to go from sample availability to first customer shipment as customers do the necessary development work to complete and qualify their systems in the network. Since it typically takes an additional 12 to 24 months to ramp into full production"
If they are not completely idiots they should have some
heavy customer commitment even before
their chip/component design is completed and ready.
If their customer is really interested then all what is necessary like
PCB, software, test/verification plan of the customer final product
will be ready the same day when first sample will be available.
Final product should be assembled in next couple days and
complete test/verification should be done
in next couple weeks.
Everything else is just pure BS and excuse...
I see more and more the case when a financial opinion such as the latest from Zacks is not an accurate basis for an investment. I can point out almost half of the opinions I have heard or read from experts end up not being helpful at all! Example: After I bought facebook at $40, it plummetted to $25. Within 2 weeks, an opinion said it would drop even further. Well...it DID drop... a few more dollars.... BUT LONG term, t went up. (mid $60 now!) I wish I had NOT listened to that short term opinion-- I sold & LOST MONEY!! That's just one example of many opinions based on the SHORT term, not the long term. If Zacks is giving short term advice by saying "definitely could be trouble on the horizon," based upon short term factors, I ask, How helpful is this?
Compare to Vitesse's view, pulled from their financial statement:
"Because our products are highly complex, it takes our customers 12 to 36 months to go from sample availability to first customer shipment as customers do the necessary development work to complete and qualify their systems in the network. Since it typically takes an additional 12 to 24 months to ramp into full production, we believe design wins represent a good leading indicator of potential future revenues. We model how our customers will ramp from design win to production based on a number of factors, including customer forecast, market segment, type of product, and historical results.
In 2013, we introduced the third-generation of both our switch engine and PHY products. These new products allowed us to significantly increase our served markets in Carrier, Enterprise and IoT networking. We have become the clear choice for meeting our customers’ needs for service delivery, synchronization, security, and software."
Vitesse is not short, but LONG TERM. By late 2014 through 2015 we will see the revenue flow from the design wins.. Zacks, you are not helping me at all, and I wonder if you're truly helping other long term investors.
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Between O'Connell and Nuss Vitesse has found her ideal face! Uday is a great mind but he best helps us off the Microphone. Noticed CRG and his sidekick sounded very alive in their Craig-Hallum presentation??
The company is taking advice to heart, great for all of us!!
"Are you telling me that Brocade, Broadcom, Cisco
do not have their hardware designers teams
creating ASICS, FPGA, Custom Components?"
Never said it.
"They have all kinds of power management features
fitting exactly to their system needs."
CSCO is VTSS' largest customer.
Again, you confuse a box full of switches with silicon switches on chips. ASICs, FPGAs, and custom components are largely a different market. This is not how VTSS segments the market.
You really have no idea what you are talking about. Why are you here?
I tell you what.
Vitesse never competes where it is worth to compete.
That is why their POS is $3.695 and CAVM is $52.28.
But how Camarillo company can compete against Silicon Valley company?
CAVM does provide competition but I believe it is directed to Broadcom in the "larger" switch space. VTSS doesn't compete in that market. Actually, this very subject was discussed during VTSS's presentation at Craig-Hallum yesterday!!! You may want to listen to the replay to get a better understanding of the switch market. Hope this helps.
One more thing, and I'll quit babbling: Does anyone see a cup and handle forming when you look over the last 4 months?
I would enjoy seeing a buyout, for sure! But I'm not savvy on the specific components each has and needs for Ethernet and carrier.--And WHO would benefit most from a buyout. Vitesse has boasted uniqueness in power usage, synchronization, and reliability with security, particulary with its design wins over the last three years. These are the talking points of the Company, right?.
The reality will be in next quarter's sales, predictions, and investor confidence for Q4 and 2015. I will hold steadfastly at this point... Whether it's realization of sales, or buyout, I believe VTSS will hit $6.00 by November. So any ideas: Which parent company would most benefit from a buyout?