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Cypress Semiconductor Corporation Message Board

  • floppy_6 floppy_6 Feb 22, 2006 9:29 PM Flag

    Question on STP earning

    http://finance.messages.yahoo.com/bbs?.mm=FN&action=m&board=3750345602&tid=stp&s
    id=3750345602&mid=1291


    Cowen does allude that STP has problem to locate full poly supply to satisfy their full 130-140 MW lines so to shortfall on Q1 guidance.

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    • SPWR does express quite absolute optimism about Poly supply in First Albany CC and a bit reserved on P&J cc. Still they are quite optimistic on China ample poly fab's supply.

      Somehow STP revenue drops from Q4 - 89 mils to Q1 - 77 mils. That's quite a drop to be excusable by Chinese new year. It also does not make sense that STP sit right at the hub of Chinese wafer fabs and not be able to fill the orders? while SPWR can.

      • 2 Replies to floppy_6
      • ==(Somehow STP revenue drops from Q4 - 89 mils to Q1 - 77 mils. That's quite a drop to be excusable by Chinese new year. It also does not make sense that STP sit right at the hub of Chinese wafer fabs and not be able to fill the orders? while SPWR can.)

        ceo of STP, Shi said "We have secured enough silicone wafer for planned production in 2006, our projected production volume is somewhere between 130 megawatt to 140 megawatt.". STP sold 26 MW in Q4 on revenue $89M, I take 140M is about $490M revenue in 2006, little short of expectation. So STP need more silicon. Shi continued "and the rest is based on quarterly price." that means STP is still fall short of 10 MW material around 100 tons of si. Those will buy on open market at market price.

        On Q1, STP targets $77m revenue is very conservative. it based on 1 full week off in Chinese New Year(Stock market shut down 2 weeks). so many employees felt not enough must take PDO vacation to make up 2 wks. That was why STP lower the target. The street still take it $87m. It is possible? yes, it may make it. Steet guessed $75 in Q4 it came out $89. right?

        "STP sit right at the hub of Chinese wafer fabs and not be able to fill the orders?"
        the reason is now clear, the new fab was not in full production. it had quality problem sent *sub-standard* silicon to STP ends up $1.6m charge in Q4. the fab has line#1 capacity 500 tons/year. around 50MW mostly for STP. STP has investment on it which is right next to STP in the same city. The company is ShenYang Silicon. it schedules to roll out 1,200 ton in 2008 if not sooner.

      • in some cases SPWR is procurring poly for the ingot manufacturer

 
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