user1010101

STEC Revisited: Will It Go from Good to Great?

Sorry GARP - but you have last too much credibility. Anything you say now just sounds like made up stories (i.e. your belief that EMC is pushing SSD's by offering incentives). I think you need to step back and recognized everything you initially thought was incorrect - it is clear SSD adoption is not taking place as rapidly as you thought. HDD storage is cheap and short stroking drives to increase performance is understood by IT departments. It will take time before comapnies decide to switch over to a new device - prices in $/Gb will need to come down in order to convince people.

I am glad you have suggestions for the company but you should have presented all of these risks in your initial reports. Clearly, there were conflicts of interest on the board and management was weak.

You became too attached to STEC and didn't think objectively.

STEC's Promising Future – Part II

I guess we all now know where GARP was getting his borrow from.

Promising Future for STEC

Ickabod,

Sorry to burst your "bear" bubble but I am afraid you are the one who made the mistake.

1. Go to EMC's web site and browse around - you will find a large slide show that explains the benifits of using STEC's drive

2. Go to IBM's website and you will see that they now have the highest performance arrays in the industry (due to STEC drives) and it only accounts for 8% of system costs.

3. You compare regular SSD's to enterprise class SSD's! It would be the same mistake if you compared a regular HDD to enterprise class HDD. Of course the numbers don't add up if you are comparing the wrong things!

4. If it makes so little sense to use SSD technology, where are all companies introducing some type of SSD drive in 2010 that is enterprise class.

5. Do some research on virtualization, bandwidth traffic, telecom backhaul problems etc and you will see that SSD being used in Tier0 of the storage array will become an essential technology.

6. Don't refer to data the is over 1 year old when even STEC's SSD's just recently were qualified with EMC - your data is irrelevant.

Promising Future for STEC

Could you actually provide some links to confirm your comments - where did STEC lose to Intel???

Promising Future for STEC

Do you happen to have any expectations are assumptions regarding margin stability?

Promising Future for STEC

another great article GARP

STEC's LSI Design Win Confirms Momentum: More Upside to Go

could I please get a copy of your model - I am curious what your model assumptions are:

-specifically, how many units do you think they will ship to EMC
-what margins are you assuming given they are running at 50% utilization in asia (I think that 30% op margins are sustainable for maximum 3 quarters).

Great set of articles on this name. Would love to chat more!