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Technology Stocks : MMC Networks Inc (MMCN)
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To: DD™ who wrote ()5/7/2000 10:39:00 PM
From: Adam Nash  Read Replies (1) of 507
 
Don't know if you all noticed, but I found this in the Arrowpoint Communications S-1:


WE PURCHASE SEVERAL OF OUR KEY COMPONENTS FROM SINGLE SOURCES, AND WE COULD LOSEíREVENUE AND MARKET SHARE IF WE ARE UNABLE TO OBTAIN A SUFFICIENT SUPPLY OF THOSEíCOMPONENTS

Several key components of our products are currently available from singleívendors. If we are unable to obtain sufficient quantities of these components,íwe would be unable to manufacture and ship our products on a timely basis. Thisícould result in lost or delayed revenue, damage to our reputation and increasedímanufacturing costs.

Examples of the components which we purchase from single sources are:

- critical network processors for both the CS-100 and the CS-800 from MMCíNetworks;

- the power supply device for the CS-100 from Cherokee International; and

- the power supply device for the CS-800 from Tectrol.

We do not have guaranteed supply agreements with any of theívendors ofíthese products. Moreover, even if supply isíavailable, our inability to accuratelyíforecast the demand for our products may result in an inadequate supply of theseícomponents. Our products are designed based on the MMC network processor, and ifíwe are unable to obtain aísufficient supply of these network processors fromíMMC, we would be forced to significantly modify the design of our productsítoíuse different network processors.


Now that Cisco is acquiring Arrowpoint, the ramp up could mean a huge sales runup for MMC Networks.
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