SMART Modular Technologies (SMOD)

All Comments on SMOD

  • commenter
    BABUYAYA
    May 21 08:11 AM
    Memory Trouble: Sector Is Reeling [view article]
    GOOD POINTS. Having weathered the swings for the past 8 years on the supply side of Memory, position becomes almost as crucial as the underlying technology> SNDK will continue to reap the benefits of greater MLC penetration and Killer apps on the horizon (IE: SSD's): Samsung is already planing release of 3 bit per cell technology later in the year that has Both Tosh/SNDK ready to take cover. The 2000 LB gorrila is looking for a snack.


     Reply
  • commenter
    flaming bag
    of poo
    May 16 03:31 PM
    SanDisk: Analysts Disagree; JMP Sees Competition Rising [view article]
    Every time I hear of SanDisk I can't help but think of those bozos on Wall Street Warriors who were pumping it to their clients at $55 (or thereabouts). I wonder if they're still employed? Reply
  • commenter
    SeekingAlpha
    Editors
    Apr 06 05:19 AM
    My Website
    General Discussion on SMOD
    Is this a buy or a sell? Reply
  • commenter
    William
    Trent
    Jun 04 05:35 PM
    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
  • commenter
    schmitt
    Jun 04 05:19 PM
    My Website
    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
  • commenter
    Frank Li
    Jun 04 04:37 PM
    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? Reply
  • commenter
    Ralph F
    Jun 04 04:33 PM
    Semis 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
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