Applied Micro Circuits Corp. (AMCC)
Loading...
Symbols:
AMCC Forum Topics
- All Comments on AMCC
- General Discussion on AMCC
- 10GbE Optical Component & SFP+ Modules: This Time It's Different [view article]
- Semiconductors: Breakout of FTTH Silicon Market Share [view article]
- Semis With Highest, Lowest Production To Sales Ratio [view article]
- The Continuing AMCC Disaster Movie [view article]
- One Page Annotated WSJ Summary, June 13th [view article]
- Chart: Digital Logic Semiconductor Manufacturers - Gross Profit Margins [view article]
loading ...Recent AMCC Articles
- 10GbE Optical Component & SFP+ Modules: This Time It's Different
- Vitesse Exits The Storage Business: My Concerns
- The Marked Madness of the Carrier Chipset Market
- AMCC Falls Further Down the Spiral
- Semiconductors: Breakout of FTTH Silicon Market Share
- Does Expected Sales Growth Justify the Inventory Buildup At the Semis?
- Semis With Highest, Lowest Production To Sales Ratio
- Semis With Biggest Y/Y DSI Increases, Decreases
- Vitesse: Notables From Q207 Conference Call
- Applied Micro's Revenues “Declined In All Business Lines”
- Full List of Articles »
Trading Center
Hedge Fund Jobs
Job Seekers: Search jobs by category, get job alerts by email or live feed, apply online See full list of jobs »
Employers: See all recruitment options, get applications online or by email Post a job »
Editors
General Discussion on AMCC
Is this a buy or a sell? Replyahead
10GbE Optical Component & SFP+ Modules: This Time It's Different [view article]
CSCO prints and gives away their stock faster than the rest of us can buy it. CSCO = dilution ReplySemiconductors: Breakout of FTTH Silicon Market Share [view article]
Excellent article -- great data. ReplyTrent
Semis With Highest, Lowest Production To Sales Ratio [view article]
Ralph - I am comparing the amounts produced to the amounts sold to customers. If more is produced than is sold inventories will rise. If less is produced than is sold, inventories will fall. Too much inventory can be bad for future margins in one of at least two ways: 1) lower production, which due to operating leverage would mean each unit would have a higher cost; 2) obsolescence, which could lead to write-offs. Underproduction can mean lost sales.Frank - You got two of the three potential reasons, with the other being a temporary shortfall (perhaps due to high seasonal demand or other factors.) In the case of MEMC, the prolonged underproduction is due to limited supplies of the raw material polysilicon. I would classify this as a production problem, but since it applies to all manufacturers it is not an MEMC problem. In fact, it is helping their margins since they are one of the few available sources.
Andrew - per my comment to Ralph, over/underproduction at fabless companies can impact margin through obsolescence or by missing out on sales if the inventory is not available. I think it is still worth looking at the trends for each company, although further analysis would require separating the companies into fab/fabless as well as other segments such as analog or memory. Reply
Semis With Highest, Lowest Production To Sales Ratio [view article]
Trent:Big error here. The production effect and the impact on gross margin applies only to companies that own their fab. Fabless companies do not see Gross margin move as 2000 wafers from TSMC costs the same as 1500.
You need to remove all fabless revenue to make this a meaningful study. Reply
Semis With Highest, Lowest Production To Sales Ratio [view article]
Why would MEMC Electronics (WFR) be underproducing unless it was (a) trying to work off excess inventory, or (b) facing production problems? ReplySemis With Highest, Lowest Production To Sales Ratio [view article]
V. helpful article -- thanks.Two questions.
You wrote: "For semiconductor manufacturers, production is represented by the semiconductors sold [COGS] and any change in inventory." Don't you mean revenue or sales, not production? Production is only goods manufactured, not net inventory sold.
Second, the main reason why a semiconductor company would produce less than its sell-through rate is if it is trying to reduce inventories. Yes, that probably points to rising gross margins in future, but doesn't it also imply that the company has a significant problem with inventories, and might have to write-down the value of those inventories if it can't sell them off? Reply
The Continuing AMCC Disaster Movie [view article]
Doesn't quake already have a SFP+ module? www.eetindia.com/ARTP_... ReplyZenilman, Se
ekingAlpha.c
om
Chart: Digital Logic Semiconductor Manufacturers - Gross Profit Margins [view article]
Thank you for your suggestion. CTLM & MSPD will be included in charts beginning today, May 8, 2006l. Reply