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Also, ASPs do seem to be falling quickly.

I listen to the call live and for Ace 12 to say that Neil Hunter sounded shakey is dead wrong!

Yes, ASPs are falling, down 47% in FY2000, but that decline will slow significantly in FY2001 with ASPs decling only 25%. This decline will be more than compensated for with a 50% decline in product costs. And all of these projections are based on the 2" wafer.

The big surprise was only 60% growth guidance The more I think about this, the less it bothers me. Here's why . . . CREE is backlogged with $76+ million in orders and will sell out its annual production capacity by August. Because CREE has a finite manucfacturing space, they can only produce so much product. Thus they are in the process of building new manufacturing space. I think 55%-60% EPS growth on level production capacity is pretty darn good. I aslo believe that CREE's position in the industry means that when the new manufacturing space comes on line, its production will be absorbed by clients very quickly. Short term problem in my mind.

My $.02 worth!

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