If true, HIFN may make us look smart
Hi/Fn Inc.
Dow Jones Newswires -- October 7, 1999
DJ Hi/fn Dn 30%; Concern Over 4Q Customer Orders Cited>HIFN
NEW YORK (Dow Jones)--Shares of semiconductor company Hi/fn Inc. (HIFN) plunged as much
as 31% Thursday after BancBoston Robertson Stephens & Co. analyst Arum Veerappan made
off-hand comments at a morning meeting.
Most analysts had not directly seen or heard Veerappan's written commentary, but attributed Hi/fn's
stock drop to his declarations.
"Robbie Stephens has made some kind of comment," said Rick Billy, an analyst at SG Cowen & Co.
"I'm sure that's why the stock is down. What the content of that comment is I don't know."
Hi/fn was halted for trading at 11:46 am EDT, at 74, down 30 3/4 or 29.4%.
In a summary of the 5 a.m. meeting at BancBoston, Veerappan wrote: "Quarter appears to be in
good shape, could be upside, strength primarily due to Ascend business. Probably will leave
estimates for December and March quarters unchanged - don't see upside to Quantum business.
Ascend business has grown rapidly in short period, don't expect that rate of growth going forward.
Company does have franchise technology, but believe that December could be flat."
Veerappan was not immediately available for comment.
Analyst Sandy Harrison of Pacific Growth Equities, who heard about the Veerappan comments
second-hand, interpreted Veerappan's comments to mean that Hi/fn will beat BancBoston's
third-quarter projections, but business at Quantum Corp. (DSS) and Lucent Technologies Inc. (LU),
two of Hi/fn's major customers, is not going to significantly expand in the fourth quarter.
"Therefore they do not see the likelihood of raising fourth-quarter projections," said Harrison, who
rates the company at "buy."
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