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: Xpiderman who wrote (3544)	6/29/2000 9:00:00 AM
From: SJS	Read Replies (1) of 3818

From CSFB: _____________ PMC-Sierra (PMCS-$183 1/16-Cap $26.3 B-Buy) PMCS Acquires Datum Telegraphic CY00E: $0.78; CY01E: $1.17 ú PMCS announced today that it will acquire Datum Telegraphic for approximately $125 MM. Datum is a 30-person start-up specializing in DSP designs used in wireless base station applications that address next-generation digital wireless transmission standards (i.e. W-CDMA, EDGE, etc.) using a single power amplifier architecture (currently multiple PAs are required to handle each separate network standard). ú The acquisition of Datum will help enhance PMCS' position in the wireless infrastructure market. The company has had modest success this year in base station applications with its VORTEX chipset and we had been anticipating for some time now that it would begin focusing more heavily on the wireless infrastructure market, especially as wireless data transmission gains momentum. We do not think, however, that PMCS will try to make a move into the wireless handheld market as they appear decidedly focused on the central office/infrastructure side of the "communications food chain." The transaction is expected to close in 3Q00. ú We believe the acquisition will have no meaningful impact to EPS in the near term and therefore are not changing our model at this time. We reiterate our Strong Buy rating and $250 price target.

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