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Editorial: Feb '07 CS/SSL Stock Portfolio Update
... It's been awhile since Jo Ann has reported on her model portfolio of compound semi (CS) and solid state lighting (SSL) industry stocks, most of which are traded over the USA's Nasdaq exchange. The delay is because the majority of stocks have continued to underperform, certainly compared to last...
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TriQuint's EDGE Module Shipped for New Samsung Wireless Phone
CompoundSemi News StaffFebruary 14, 2007...TriQuint Semiconductor, a leading manufacturer of RF components, reported that
it is shipping production volumes of its EDGE quad-band transmit module, the TQM6M5001,
to Samsung. TriQuint’s EDGE module will appear in Samsung’s newest
EDGE wireless phone, the SGH-E490. According to TriQuint, the TQM6M5001 and
other members of the Quantum Tx Module family provide full GSM / EDGE capability,
and like its predecessor, it shares the same 6mm x 6mm footprint. Paul Cooper,
TriQuint’s Strategic Marketing Manager for Handsets said that the module
uses in-house HBT and pHEMT technologies.
The TQM6M5001 provides quad-band signal amplification and switching, plus power
/ switch control and ESD protection integrated into what TriQuint contends is
the smallest form factor available. The TriQuint TQM6M5001 offers all-in-one
RF transmit functions with full GMSK (Gaussian minimum shift keying) and EDGE
linear capabilities, combining a quad-band EDGE power amplifier (PA), a transmit
(Tx) / receive (Rx) switch, plus PA and switch control along with ESD (electro
static discharge) protection – all in a form factor no larger than TriQuint’s
present GSM / GPRS transmit module family. The board space that the device saves
allows added features which handset consumers want. Another benefit of the module
is that its power added efficiency (PAE) extends battery life. TriQuint
News Release Molecular Imprints Debuts New Imprint Lithography Tool
CompoundSemi News StaffFebruary 13, 2007...Molecular Imprints Inc. (MII), an Austin, Texas-based company that specializes
in nano-imprint lithography, has unveiled its Imprio 1100 lithography system
at the Strategies
in Light conference in San Jose, California. Like the company’s
other imprint lithography tools, it uses a fused silica template with a circuit
pattern etched into it that its tools press into a silicon containing monomer.
The monomer is separated from the template and hardened with UV light to make the
desired circuits. A circuit pattern left on the substrate is now ready for semiconductor
processing such as etching or deposition. The company calls their patented imprint
lithography technique, Step-and-Flash Imprint Lithography (S-FIL). Molecular
Imprints boasts that to date it has made features as small as 20 nm using its
technology, and its systems can easily make sub-50 nm features. Unlike the company’s
previous devices, the new Imprio 1100 system is a high throughput, whole wafer
imprinting device. It is fully automated and combines the resolution and circuit
design control of e-beam lithography with the throughput, overlay, and operating
simplicity of a mask aligner. The system is designed to fabricate circuits for
an array of applications including: LEDs, high density disk substrates for hard
disk drives (HDD), and optical components requiring fine resolution patterning
and three dimensional features.
“MII has made tremendous progress over the last 18 months adapting
the S-FIL process, originally developed for step and repeat imprint lithography
on CMOS wafers, to the specific needs of the compound semiconductor industry.
MII can now provide turnkey lithographic processes capable of high throughput
and long process life on the fragile, non-flat surfaces of compound semiconductor
wafers.” said Mark Melliar-Smith, CEO of Molecular Imprints. “In
addition, the I-1100’s conformal S-FIL technology is providing an enabling
technology for similar high resolution applications like the patterning of discrete
track and bit patterned media for hard disk drive development and precision
grating structures for optical components.” Company
News Release Cree Ships High Power Silicon Carbide Schottky Rectifier
CompoundSemi News StaffFebruary 13, 2007...Cree Inc.of Raleigh, North Carolina USA, reports that it has begun shipping
production quantities of its new 50-amp Zero Recovery Schottky rectifier operating
at 1200 volts. According to Cree, the new CPW2-1200S050, an innovative power-handling
device that can significantly improve levels of efficiency in power inverters,
can allow applications such as solar and wind power converters, industrial motor
drives, and electric vehicles to operate at higher levels of efficiency. The
company says that because it eliminates the need for snubbers reduces component
count, and reduces power losses, it can also simplify the design of systems
for power factor correction boost, lead to cooler operating temperatures, and
produce significantly less electromagnetic interference (EMI).
"Recent advancements Cree has made in material quality allow us to
expand our product offerings into much higher power levels, opening whole new
applications for our SiC power device technology," said John Palmour,
Cree executive vice president for advanced devices. "This new device
is another example of Cree's leadership in silicon carbide materials and high
power devices. It can help designers address energy efficiency requirements
driven by global energy concerns." Company
News Release Skyworks Debuts Helios WEDGE Transceiver
CompoundSemi News StaffFebruary 13, 2007...Skyworks has unveiled its Helios WEDGE Tranceiver which is designed to eliminate
some of the problems of 3G cellular phones such as size, cost, and battery life.
Skyworks also debuted its very low cost Intera family of power amplifiers and
front-end modules for GPRS, EDGE, CDMA, and WCDMA. According to the company, one
of the main design features that allows the size, cost, and battery life improvements
in the Helios WEDGE Transceiver is that it does not require interstage filters
in the transmit (Tx) and receive (Rx) paths. The company says that because the
device does not have interstage surface acoustic wave (SAW) filters, it saves
board space, reduces production cost, decreases design time, and enables high
speed data communication of up to 14.4 Mbps. The company says its Helios WEDGE
Transceiver is 40 percent smaller than comparable solutions, and it greatly improves
battery life beyond that of other solutions. Skyworks points out that the reduced
board space allows room for features such as WiFi, Bluetooth, FM receivers, and
DVB-H. Skyworks says the device’s direct conversion transmitter architecture
effectively permits shared Tx EGPRS and WCDMA modes - enabling extremely high-speed
data communication. Company
News Release.
Skyworks also added a new high-power, high-efficiency quad-band solution compatible
with system-on-chip (SoC) architectures designed for handsets in emerging markets.
The new SKY77531, which is part of the company's InteraLite portfolio of solutions
targeted at emerging markets, offers many of the same advantages as its dual-band
transmit and receive GSM/GPRS front-end module, mainly low cost and small form
factor, improved reliability and battery life.
Skyworks will make samples of the Helios WEDGE transceiver available in the
fourth quarter of 2007. The SKY77531 front-end module will be available for
sampling in the second calendar quarter of 2007. The Skyworks will be showcasing
its portfolio of Intera front-end modules and Helios radio solutions in Hall
8, Stand C132 at 3GSM World Congress 2007, being held February 12 - 15 in Barcelona.
Company
News Release Avenex Posts Strong Quarter Despite Abandoned AcquisitionFebruary 8, 2007...Optical network component maker, Avanex of Fremont, California USA, reported
financial results for the second quarter of fiscal 2007, which ended December
30, 2006. The company reported a record revenue for the quarter of $55.6 million.
This is up 54 percent from the same period a year ago, and up 9 percent from
the previous quarter. The company reported a net loss of $8.6 million. This
includes $2.1 million in "due diligence expense related to abandoned acquisition
activity." This compares to a net loss of $9.7 million in the prior quarter
and $18.5 million in the second quarter of the previous fiscal year. The company
indicated that its gross margin rose to 19 percent from 10 percent the previous
quarter and 8 percent during the quarter a year ago.
“The second quarter was exceptionally strong and we are very pleased
to report the highest revenue and gross margin in the history of Avanex,”
said chairman, president, and CEO Jo Major. The company expects revenues between
$54 and $57 million and a gross margin of 17 to 21 percent in the third quarter
of fiscal 2007. Company
Financial Results for Q2 Fiscal 2007 RFMD Introduces Front-End Components fro 3G Multimode Handsets
CompoundSemi News StaffFebruary 8, 2007...RFMD of Greensboro, North Carolina USA, has introduced a portfolio of complementary
cellular components for cellular front-ends of multimode 3G handsets. The company,
a dominant player in the design and manufacture of radio frequency systems for
mobile communications, announced the introduction of its new portfolio of cellular
front-end components, which will initially include: cellular switches, DC to
DC converters, and low noise amplifiers (LNAs). This latest introduction goes
beyond the transceivers and power amplifiers-based front-end solutions for which
the company is known. RFMD will showcase its new complementary components and
front-end solutions for 3G multimode handsets at the 2007 3GSM World Congress
in Barcelona, February 12-15, 2007, in Hall 8, Stand 8B79.
According to RFMD, the increasing complexity of cellular front-ends for multimode
handsets drives the requirements of platform flexibility. RFMD says its new
high-linearity, ultra-compact LNAs and low-loss, high-linearity switches ease
the implementation of additional bands for multi-region support, thereby meeting
the platform flexibility needs of customers. Additionally, RFMD says its low-noise
DC to DC converters allow longer battery life and reduce thermal dissipation
in 3G multimode handsets. Company
News Release Vitesse Co-Founder Ira Deyhimy to Retire
CompoundSemi News StaffFebruary 8, 2007...Vitesse, a maker of semiconductor solutions for communications and storage
devices located in Camarillo, California USA, reported that its co-founder and
vice president of business development, Ira Deyhimy, is retiring from the company
after 22 years of service. He served as the vice president of engineering who
was in charge of all product development. He also served as business unit general
manager before taking the position of vice president of business development
and product strategy.
Vitesse points out that Deyhimy was instrumental in defining the company’s
business model, and he helped secure the company’s initial funding at
its inception in 1984. “From defining business models and technology
roadmaps to mentoring our engineers, Ira has played a vital role in the transformation
of Vitesse. His contributions have helped to evolve Vitesse from a GaAs-based
technology startup to a leading worldwide supplier of high-performance communications
components,” said Christopher Gardner, CEO. “On behalf
of all of the employees at Vitesse, we thank Ira for his many contributions
and unwavering commitment to the success of Vitesse.” Deyhimy reportedly
plans to provide business and technology consulting services to the venture
capital community and emerging technology companies. Company
News Release Genesis Photonics Orders Six Aixtron MOCVD SystemsFebruary 6, 2007...As part of a long-term purchase agreement, Genesis Photonics of Tainan, Taiwan,
reportedly ordered six more Thomas Swan Close Coupled Showerhead MOCVD systems
from Aixtron. A fast growing LED manufacturer, Genesis Photonics offers gallium
nitride-based LED epiwafers and chips for lighting, displays, backlights, and
automotive applications in addition to research, scientific, and industrial
applications.
Aixtron points out that as the unit price per device falls and the volume of
LEDs produced keeps increasing, LED producers rely on MOCVD tools to improve
yield and reduce costs, while producing the high quality LEDs the market demands.
Genesis Photonics produces high performance green LED chips. Genesis Photonics
acknowledges on its website: “tools to manufacturers of close tolerance
components, such as MOCVDs, are the best guarantee of our qualities.”
Terms of the purchase agreement were not disclosed, and no specific timeline
for delivery was mentioned. Aixtron
News Release Veeco Gets $1.7 Million Order from California NanoSystems Institute at UCLA
CompoundSemi News StaffFebruary 6, 2007...Veeco of Woodbury, New York USA, reports that the California Nanosystems Institute
at the University of California, Los Angeles (UCLA) has purchased $1.7 million
of atomic force and scanning probe microscope systems (AFM/SPMs) and optical
profilers for use in the institute’s multi-user core laboratories. Veeco
said that the systems ordered during the fourth quarter of 2006 including the
"high value/low cost" Caliber SPM, a Dimension 5000 high performance
AFM, and a Wyko NT 9300 high performance Optical Profiler will be utilized in
nanoscience research. According to Veeco, the CNSI is also the first customer
to purchase its new integrated, Bioscope II Confocal AFM Package, which features
open optical and physical integration between a laser scanning confocal microscope
and an AFM. Veeco says that coupling of laser scanning capabilities with an
atomic force microscope makes the system ideal for versatile biological imaging
applications.
J. Fraser Stoddart, director of the CNSI, who holds UCLA's Fred Kavli Chair
in Nanosystems Sciences, commented, "These latest purchases further
position CNSI as one of the world's leading nanotechnology centers focused on
the advancement of cell biology, molecular and materials sciences. These tools
offer us state-of-the art 3D surface metrology and will be an important asset
to the work conducted at the Nano and Pico Characterization core facility at
CNSI to visualize surfaces and molecules, as well as nanostructures and devices,
down to the level of individual atoms." Veeco
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The
McDonald Report
Commentary & Perspective...
February 14, 2007...It's been awhile since Jo Ann has reported on her model portfolio of compound
semi (CS) and solid state lighting (SSL) industry stocks, most of which are
traded over the USA's Nasdaq exchange. The delay is because the majority of
stocks have continued to underperform, certainly compared to last year at this
time, and disappointing news is never that enjoyable for us to report. But there
are positive signs and some good performers, particularly Anadigics and Color
Kinetics, as you'll see in this issue of The McDonald Report.
I began this experiment almost two years ago, in the Spring of 2005, when stock
prices of virtually all the USA's CS and SSL publicly held companies had reached
what I felt at the time of purchase was their all-time low. I bought 100 shares of each stock to simplify the
math, and because that was all I could afford to gamble, especially on
just an "experiment." I also pledged to hold the stocks long-term... at least as long
as I reported on them. In order of their purchases, beginning in April 2005,
the initial portfolio included: Emcore (EMKR), Cree (CREE), TriQuint (TQNT),
Color Kinetics (CLRK), Anadigics (ANAD), JDS Uniphase (JDSU), Spire (SPIR),
RF Micro Devices (RFMD), Kopin (KOPN), WJ Communications (WJCI), Vitesse (VTSS).
Later, I added Aixtron (AIXG) and AXT, all of which are traded over the Nasdaq
exchange. Most recently, I added TIR Systems, which trades on the Toronto exchange
under the symbol, TIRSF. (I still intend to add IQE in the UK, but my broker
still hasn't figured out how to buy 100 shares of London stocks). Total investment
added up to just under $7000.
So it's been almost two full years holding most of these stocks. As of February
of 2006, I truly thought we were on the rebound towards at least their original IPO prices. Doing the math, the value of the portfolio had increased
an impressive 43 percent. By mid-March, 2006, it continued the rise to 60 percent, and . As
reported at the time, a 60 percent "unrealized gain" (as they say in stock circles) was a metric that any USA stock market
follower would have said was "huge and exciting news." In real money terms, my initial investment
had grown to just over about $10,000. If I had made the level of investment most shareholders do, a zero
or two would have been added all around and, hey, I'd have probably cashed in.
But this is a model. An experiment. Something to write about periodically. And
a barometer of what's happening throughout the CS/SSL industries. As it turns out, the portfolio's "unrealized gain" as of this month, has fallen
to just over $2,000. But hey, we're still up, with only a few stocks in the
minus zone.
Here's how they stack up, as of the close of the market February
13th, the day before Valentine's Day. The sweethearts in the portfolio are Anadigics
(ANAD) at +$993 and Color Kinetics (CLRK) at +$809. The poorest performer turns out to be Cree weighing in at -$775, which is really sad and really misleading given that Cree has rolled out
nothing but excellent new technology and customer design wins over recent months.
Go figure! In alphabetical order, here's how the 14 stocks in the portfolio
performed: AIXG +$135, ANAD +$993, AXT +$358, CLRK +$809, CREE -$775, EMKR +$62,
JDSU +$29, KOPN -$51, RFMD +$255, SPIR +$411, TIRSF +$6, TQNT +$137, VTSS -$153,
WJCI -$53. That should add up to +$2163. Take that gain and divide it by the
cost and we still get an approximate 30 percent increase in value. Not bad, given the current state of the economy (and the miserly interst rate one gets from a savings account or CDs in a bank).
Why didn't the portfolio, overall, continue on last last year's roll? I've come to understand that it has very little to
do with the performance of the individual companies. The big picture right now portrays two totally opposing schools of thought.
One school, call them the pessimists, says that the USA's economy is recession-bound
due to what they're calling "the housing bust" and that the slow down
in housing will spread negative aspects to other sectors. The other school,
call them the optimists, says that despite housing being down, the rest of economy
is so strong that it will carry housing and that we may actually be facing inflation.
Diametrically opposed schools. Fiscally conservative brokers are advising clients to play it safe and sit on their cash. They're waiting out the continued
uncertainty because either extreme could actually be right. Only the gamblers are playing.
I think that's what's happening to a great deal of America's wealth. Investors are keeping their money safe by sitting on their cash. Not rolling of the dice. And that extends
over to the technology sector big time. Investing in technology stocks is always considered risky business. (That's why there aren't added zeros to my CS/SSL portfolio.)
The Nasdaq exchange itself is considered a high risk
game. But when you look at the individual companies, like those represented
in the portfolio--and beyond, to the numbers of stocks I wasn't able to purchase
simply because they were priced out of my league, the vast majority of the companies are, in fact, strong.
And we know their technology is strong because we understand leading-edge technology better than anybody. Anadigics and Color Kinetics were obviously the portfolio standouts, for good reasons. Anadigics
has been exceptionally diligent by steadily rebuilding its telecom business
after the bust that hit everyone in the CS sector so terribly hard. As CEO Bami
Bastami recently pointed out, "Anadigics scored its seventh consecutive quarter
of net sales growth and posted pro forma profitability ahead of expectations.
It is positioning itself to capitalize on all the top voice, data and video
segments of the wireless and broadband communications markets, offering a rich
breadth and depth of 3G/3.5G products that use the W-CDMA, the HSDPA, HSUPA
& EDGE standards, 4G products for WiMAX and WiBRO systems, WiFi products
that use the 802.11 a/b/g and 802.11 n (draft-n, MIMO) standards, CATV set-top
box and infrastructure, and FTTP products."
Color Kinetics continues to stay on its SSL roll by leading, not following.
As CEO Bill Sims put it most recently, "Today there is heightened awareness of the
potential for energy-efficient lighting to help conserve resources and spare
the environment. We believe such increased attention to the matter, along with
continued research, development, and government funding, will help set the stage
for an eventual transition to LED technology as the right long-term solution.
As the market opportunities for LED lighting continue to grow, Color Kinetics
is preparing in parallel to lead the transformation forward through important
new technologies, systems, and strategic partnerships."
Onward, thu the fog...
If you have questions about the
solid state lighting and compound semiconductor industries or have news
or views to share, I'm Jo Ann McDonald, Editor of LIGHTimes and CompoundSemi News.
Feel free to contact me directly, anytime. 
My direct tel at the ranch is
+1-325-463-5345
From time to time Jo Ann may comment on companies in which she holds a
modest investment - be sure to read
her disclosure at some point in time... |
