Tuesday, November 07, 2000
GSPN gets whacked
--3:30 pm - By Michael Baron
GlobeSpan (GSPN: news, msgs) is plummeting $17, or 25.1 percent,
to $50.75, on heavy volume of 11.5 million shares. This drop comes on
the heels of a near 10 percent fall in Monday's trading. The Red Bank,
N.J., communications chip firm is selling off along with the other
members of its sector on Cisco Systems' (CSCO: news, msgs)
disclosure that it plans to reduce inventory going forward [see 10:03 am
item]. GlobeSpan Chief Financial Officer Bob McMullan acknowledged
Cisco is the company's top customer, accounting for roughly 31 percent
of its revenue in the latest quarter. McMullan, who stressed that the
company hasn't changed its earnings outlook for the fourth quarter and
fiscal 2001, addressed the weakness in the stock price. "What's going
today appears to be indiscriminate selling of anyone with a relationship
to Cisco," he told CBS MarketWatch. "In fact, the company made a
number of positive comments in the conference call about its
expectations for DSL (digital subscriber line) build-out." |
