PMC-Sierra (PMCS) Message Board

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Technology Stocks : PMC-Sierra (PMCS)

PMCS 11.65

0.0%

Jan 25 4:00 PM EST

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To: Drake who wrote (2105)	9/17/1998 2:57:00 PM
From: tech101	Read Replies (2) of 3818

My guess for the recent drop of PMCS share price is twofold: 1. A few companies, such as IDTI, are competing from the lower end of ATM/PHY chipset business, but that seems insignificant. However, PMCS uses legacy technology (TTL etc) for OC12 and above circuits because silicon CMOS technique cannot handle such high frequency. However, the competition from VTSS using GaAs chips at the higher end (2.5 Gbps, read the recent VTSS product announcement) may worry the investors. I was in the Fibre Channel Conference/Expo in San Jose yesterday talking with VTSS people. I think I was wrong with my previous post regarding VTSS competition even though they said PMCS is both their competitor and partner. 2. PMCS is still dominating in the ATM/PHY chipset business. It used to have 90+% market share in that market. About a year ago, however, the market share dropped to about 70%. Guess who took the other 30% --- 3COM! The recent rumor that Intel is buying 3COM may be the primary culprit for the share price tumble. (You know what would happen if Intel does buy 3COM. However if I were Intel, I probably would buy PMCS first).

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