[TXN est cut]
pat:
RESEARCH ALERT - Texas Instruments cut
CHICAGO, Dec 3 (Reuters) - Rodman & Renshaw Inc said it cut
its rating on Texas Instruments Inc to neutral from buy, and
reduced its earnings estimates to $2.00 a share from $2.08 for
1997 and to $2.40 from $3.00 for 1998.
-- "Because 3Com/US Robotics is Texas Instruments's largest
DSP (digital signal processor) customer, we are concerned about
the recent slowdown in that company's modem sales," Rodman said
in a report.
-- 3Com Corp , a computer networking company, said
Tuesday it will cut inventory and report second-quarter
earnings below Wall Street expectations.
-- "Modem sales may be slowing because of a lack of
industry standards and competition from new technologies
(possibly much faster cable modems)," Rodman said.
"Regardless, this slowdown will most likely result in a
slowing of orders and shipments for DSP products, which account
for approximately 20 percent of (Texas Instruments's) sales in
the fourth quarter. "
-- Texas Instruments shares were off 1-13/16 at 45-7/16.
((--Patricia Commins, Chicago Equities Desk (312)
408-8787, chicago.equities.newsroom@reuters.com))
Note the part about lack of standards affecting modem sales. The X2/K56 product is dead meat. No standard and the market senses something better just over the horizon. As we all know, the question is how far. Supposedly COMs modem sales have slowed to less than $20 million per month from 7 times that level before the merger. It seems to me that the market is absolutely crying for 1MB/sec product (splitter-less is best) that is close to plug and play, costs $250 or less up front and $50/month (ISP included) ongoing. Who can give it to us and when??!!
Charlie |
