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Monday, March 03, 2008

Semi Industry Plauged by Decreasing Margins: An Opportunity for Legacy Holdings?

Intel announced today that they have lowered their gross margin gross-margin forecast for the quarter to roughly 54% from 56%.

From what I've read, excess memory chip inventories led to price declines for some companies in '07. A trend that is continuing in '08 and punishing margins along the way.

Could this actually be a proverbial foot in the door for players such as Legacy Holdings Inc. (OTCPK: LGYH) that actually come to market with solutions that are proven to help reduce operating costs for semiconductor-related manufacturers?

I've beat you over the head time and time again with Legacy's value-proposition to their target markets. With players like Tyco and Micrel already adopting products and/or technologies from LGYH, others should be at least intriuged to take a look, particuarly those that could benefit considerably from improving margins a few points.

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