Vitesse: Settled with SEC and Now Poised for Strong Growth

A Boston presenter likes Vitesse Semiconductor's prospects now that the company finally has settled its option-backdating case going back years with SEC and received a clean audit for its fiscal 2010 report. Vitesse's solutions cover all areas of enterprise and carrier ethernet markets, and the company has strong relationships with most of the leading players in the industry. VTSS has substantially lowered its costs by outsourcing manufacturing operations, while at the same time increasing its R&D spend. The company is adding new products at an accelerated pace and has scored a number of important design wins lately. Fiscal 2011 will be flat, as legacy products go away and new products start kicking in, but growth is poised to resume strongly in FY 2012. The presenter targets $8 or 50% upside from the current level.