Skip to main content
Message Font: Serif | Sans-Serif
 
No. of Recommendations: 3
Couple of notes here:

1) No cash flow statements were available from VTSS,
BRCM, and AMCC at the time that I posted this.
However, I don't think that has an impact on the ranking.

2) VTSS didn't publish a balance sheet with the
release of their Q2/00 earnings, so there are some
gaps there, but again, I don't think this affects
PMCS's ranking.

3) PMCS would have made it to top tier status if it
weren't for net margins and the flowie. HOWEVER, with
last year's net margins at over 58%, it should not be
surprising to see that number come down a bit. It's
tough enough for PMCS to maintain 80% gross margins,
let alone net margins.

4) Flowie is creeping up, but still well within the RM
standard. Something to watch for in future quarterlies.

5) I didn't give PMCS points in "inevitability" since there are viable alternatives to PMCS's products.

All in all, I think PMCS is a RuleMaker on
paper, but in reality, market share will be shared
between BRCM, AMCC, and PMCS unless some discontinuous
event happens. Bob Bailey, the Chairman and CEO of
PMCS, has alluded to the fact that within 2 or 3 years
time, the industry will consolidate so that there will
only be 2 or 3 players left in the game.

Thx.
cheers,
Albert

------------------
Financial Analysis  Company Being Evaluated                          Competitor #1   Competitor #2  Competitor #3

PMC-Sierra Inc BRCM AMCC VTSS
Current Period Year-ago PeriodYear-over-Year Current Period Current Period Current Period
Jun-00 Jun-99 Growth Jun-00 Jun-00 Jun-00
Income Statement
Sales 134,108 59,887 123.9% 245,177 74,188 114,090
Cost of Goods S 27,741 13,034 112.8% 102,520 19,273 38,747
Net Income 49,938 35,231 41.7% 55,897 27,869 32,079
Shares Outstand 169,002 152,791 10.6%

Balance Sheet
Cash & Equivale 249,917 196,691 27.1% 379,862 974,067 967,397
Current Assets 348,440 261,472 33.3% 570,251 1,039,967
Short-term Debt 4,168 2,310 80.4% 1,167 2,122
Current Liabili 120,011 90,804 32.2% 96,731 41,747 773,204
Long-term Debt 1,603 3,355 -52.2% 966 4,768

Cash Flow Statement
Operating Cash 54,481 40,658 34.0%
Capital Expendi 33,682 11,196 200.8%
1 1 1
Margins & Ratios . . . Competitors' Average
Gross Margins 79.3% 78.2% 1.1 58.2% 74.0% 66.0% 66.1%
Net Margins 37.2% 58.8% -21.6 22.8% 37.6% 28.1% 14.7%
Cash-to-Debt 43.31 34.72 24.7% 178.09 141.37 128.63
Net Cash 244146.0 191026.0 27.8% 377729.0 967177.0 448302.0
Fool Flow Ratio 0.85 0.73 16.2% 1.99 1.66 1.22
Cash King Margi 15.5% 49.2% -33.7 0.0%

Continue Here

Ranking Rule Makers

1) Brand Points (0-1) 3) Financial Dire Points (0-3)
Familiarity 1 Sales Growth 3
Openness 1 Gross Margins 3
Optimism 1 Net Margins 0
Legitimacy 1 Shares Outstandin 0
Inevitability 0 Cash-to-Debt 2
Solitariness 1 Fool Flow Ratio 0
Humor 1 Expansion Potenti 3
Subtotal 6 Subtotal 11

2) Financial Loca Points (0-2) 4) Monopoly Statu Points (0-4)
Mass Market Habit 1 Gross Margins 4
Gross Margins 2 Net Margins 4
Net Margins 2 Net Cash 0
Cash-to-Debt 2 Fool Flow Ratio 4
Fool Flow Ratio 2 Convenience 4
Your Interest 2 Subtotal 16
Subtotal 11
5) Your Enjoyment 1

Total Score 45 Second Tier
Print the post  

Announcements

When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.