>Anyone heard from Dozer? Chris?
haven't heard a peep from 'dozer or TD. they were pro'ly too busy grubbing $64 shares.
fwiw, needham and tom weisel reiterated buys:
Vitesse Semiconductor Reiterated 'Strong Buy' at Needham & Co.
news.com
Vitesse Semiconductor Reiterated 'Buy' at Thomas Weisel
news.com
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Vitesse Falls After Revenue Growth Lags Expectations
Bloomberg News
July 13, 1999, 9:39 a.m. PT
Camarillo, California, July 13 (Bloomberg) -- Vitesse
Semiconductor Corp. shares fell as much as 11 percent after the
No. 1 maker of non-silicon chips that speed up telecommunications
reported fiscal third-quarter sales that lagged some analyst
forecasts.
Vitesse fell 3 5/8 to 68 1/8 in early afternoon trading,
after touching 63 7/8. The earnings report came after the close
of trading yesterday in New York. Before today, Vitesse shares
had gained about 57 percent this year.
Vitesse's revenue rose 58 percent to $73 million, less than
some analysts expected because of a manufacturing transition at
its largest customer, Lucent Technologies Inc. The sales growth
rate was the slowest in more than three years, according to
analyst Hans Mosesmann at Prudential Securities Inc.
''Lucent's transition to outside contractors is still
causing problems,'' Mosesmann said. He reiterated his ''strong
buy'' rating on Vitesse and said he expects the stock to rise to
86 in the next 52 weeks, up from a previous estimate of 75.
''The long-term story is still intact,'' Mosesmann said,
although fiscal fourth-quarter sales to Lucent also are expected
to be little changed because of the transition.
In April, Vitesse warned that because Lucent is contracting
out some manufacturing to meet demand for its telecommunications
equipment, Vitesse couldn't be sure of the effect on its third-
quarter earnings. As much as 24 percent of Vitesse's fiscal
second-quarter earnings came from Lucent.
Lucent, the world's largest telephone-equipment maker, is
working with outside manufacturers such as Solectron Corp. to
supply customers, Mosesmann said.
''This has disrupted Vitesse to some degree because
Solectron has a different business model than Lucent,'' Mosesmann
said.
Still, demand for high-speed telecommunications equipment is
growing with increased Internet use. And Vitesse's chips are
harder to make, giving the company a competitive edge, analysts
have said. |
