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John Stamatopoulos

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  • Sequans Communications Looks Cheap, But Is It A Worthwhile Play On 4G? [View article]
    Having reviewed SQNS 1st quarter earnings report and conference call, I take away two key points;
    - SQNS can't compete in the multi-mode LTE market against Qualcomm and Broadcom and will focus on Single-mode LTE.
    - The way I see it the non-handset/smartphone market doesn't have many of the value creation features I look for in an investment. At least with handsets, suppliers can supply at scale and high volume and achieve some leverage in their model...
    Long story short Im not convinced SQNS can enjoy the Gross Margins they once had supplying the non-smartphone market. Proceed with CAUTION.....
    Apr 28 08:17 AM | Likes Like |Link to Comment
  • Cisco Targets Ruckus Wireless; Avoid New IPO [View article]
    I think at $15 the underwriters valued Rkus at $1.2 billion or 4.8 times sales. The pricing was to aggressive and price discovery is now taking place. Aruba trades at lower revenue multiple and the market is choppy at the moment . On the plus side at $15 Rkus raised more money to buy shoes!
    Nov 20 03:02 AM | Likes Like |Link to Comment
  • Fusion-io Gross Margins: You Ain't Seen Nothin' Yet [View article]
    Gross Margins came in above 58% as expected.
    Longer term I see the following factors improving margins;

    -automation of manufacturing operations: this involves improving the automation and testing to allow them to better meet customer demand without trading off core v strategic orders.
    -Software revenues, ION, IO Turbine and VSL.
    -Nand Flash relationships

    Its too early to tell when these factors will lead to margin expansion above 58%, I will keep an eye on this. Will also need to keep an eye on VMW as potential competition, although so far FIO is in front.
    Oct 28 11:05 PM | Likes Like |Link to Comment
  • Sequans Communications Looks Cheap, But Is It A Worthwhile Play On 4G? [View article]
    After digesting the September quarter earnings result and the conference call my view of SQNS remains unchanged. Don't buy unless they achieve a Tier 1 LTE smartphone win or Sales increase materially.

    My call (Don't buy) on the 14th Oct was the correct one.....
    I am concerned SQNS introduction of the streamlight product family is a core change in the business model and a concession they can't compete in the smartphone/tablet market!

    Guidance was very poor and cash burn will be high over the next 2 quarters...

    If they can't get their act together they will need to tap the capital markets...... What are they doing on the NYSE?????? No prestiege to be on the NYSE anymore...
    Oct 26 06:47 AM | Likes Like |Link to Comment
  • Sequans Communications Looks Cheap, But Is It A Worthwhile Play On 4G? [View article]
    Hi Robpgru,

    Correct, don't buy until then. Sqns will report 30-35m in cash at their next earnings report and is burning 7 m per quarter. Without a handset win or material revenue from their non-smartphone business soon, a capital raising will occur..
    Oct 16 06:29 AM | Likes Like |Link to Comment
  • Sequans Communications Looks Cheap, But Is It A Worthwhile Play On 4G? [View article]
    Hi Matt 24d,
    Thanks for your comments and links. Based on current fundamentals the risk/reward picture is very high.
    I'm happy to wait for one of the 2 catalysts mentioned in the article even if it means buying at a higher price.
    Oct 15 03:32 AM | Likes Like |Link to Comment
  • Sequans Communications Looks Cheap, But Is It A Worthwhile Play On 4G? [View article]
    Hi Michael, Im no patent lawyer but I can say gct semi is a comparable company in the lte space and they have 5 times more patents than sqns. Gct semi also has some tier 2 smartphone wins.

    The smartphone market is tough. We will find out how sqns is progressing with their non- smartphone business at the next conference call.
    Oct 14 05:38 PM | Likes Like |Link to Comment
  • OCZ Technology: Outlining The Path To Profitability [View article]
    Enterprises will hesitate to buy from a company without leadership. I believe the enterprise segment is about reliability. A CEO will help!
    Oct 7 12:43 AM | 1 Like Like |Link to Comment
  • Fusion-io: An Expensive Stock But Compelling Relative Value [View article]
    Please don't compare fio and ocz. Ocz doesn't compete in the enterprise market. Would aapl and fb trust anyone else for their mission critical data - no chance. So to be clear fusion-io leads the enterprise market and receives no competition from the consumer grade provider ocz. Furthermore if you did your homework you would realize fio is a software company, and the software allows them to provide a system sale... Please also don't compare fio gross margins of 56-58% with ocz consumer margins..
    Sep 14 04:16 AM | Likes Like |Link to Comment
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