Wednesday, September 20, 2006

Calls of Note Part 3

- Thomas Weisel Partners is positive on Trident Micro (NASDAQ:TRID) saying that based on multiple checks throughout the supply chain, they are confident that TRID's 3Q is tracking well above the high end of the company's 20% sequential revenue guidance range, driven in large part by core customers Sony (33%) and Samsung (36%).

Following recent round of checks in Asia, they have better visibility into Trident's 2007 design-win activity. Based on feedback from the channel, the firm estimates that roughly 80-90% of major design wins for 2007 have been decided, and while some of these wins could vary in coming months, they believe they have captured the majority of design activity with Trident's key customers Sony, Sharp and Samsung. In summary, the firm is most concerned
regarding potential share losses at Samsung, where Trident enjoys more than 70% share. They believe, however, that Trident has retained the majority of its sockets with Sony and Sharp and anticipate only modest share erosion, in part, owing to the introduction of new lower-end product lines.

Believes shares are relatively fairly valued at current levels, selling at 22x CY07 EPS

Notablecalls: May see some interest today.

- Thomas Weisel Partners is also positive on Genesis Microchip (NASDAQ:GNSS) modestly raising theirSeptember quarter estimates toward the upper end of management's guidance
range ($67mn to $72mn, up 20% to 29% q/q) following broad supply chain checks, including key panel makers, distributors, ODMs/OEMs and chip competitors. Firm is are raising their September quarter estimates to reflect our more optimistic LCD-monitor expectation and a slightly higher TV unit forecast.

Following checks with multiple sources during Asia trip last week, they have confirmed that GNSS 1) will retain Sony's U-series business in 2007, which is expected to ramp into more meaningful volumes as it continues to expand into the Asia region, including a new 40" design, and 2) won new 20" and possibly additional sizes up to 32"on lower-end Sony LCD-TV designs expected to launch next year. These new models could collectively contribute more than 1mn incremental units in 2007, helping to offset potential share erosion at Philips and LG.

Maintains Outperform as they believe shares are attractive, selling at 19x CY07 EPS estimate (and 13x backing out $5.00 per share in cash).

Notablecalls: GNSS may see a bounce over the next couple of days.

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