CUBE added to a new index.
The Fabless Semiconductor Association and NationsBanc Montgomery Securities Launch Fabless Semiconductor Company Stock Index
Business Wire - May 18, 1998 08:32
SAN FRANCISCO--(BUSINESS WIRE)--May 18, 1998--
Index to Showcase the Unique Market Dynamics of Fabless Companies
The Fabless Semiconductor Association (FSA) and NationsBanc Montgomery Securities (NMS) today jointly announced the launch of the NMS/FSA Fabless Stock Index (FABLS(SM) Index).
The FABLS(SM) Index will monitor stock movement of the publicly-traded fabless semiconductor companies, and accurately provide up-to-the-minute quotes. The FABLS(SM) Index was created to capture the essence of a new breed of semiconductor companies and showcase the unique market dynamics of the fabless community.
A fabless semiconductor company is one that does not own and operate a silicon wafer fabrication facility (fab), but contracts with a foundry to manufacture its chips. This model originated in the 1980s and is adopted by companies wishing to eliminate or reduce the capital investment necessary to build a $1.5 billion fab and the resources necessary to keep the fab operating at the leading edge. The group's inherent value is derived from their design capability and intellectual property portfolios. In 1990, there were seven public fabless companies with a total market value of $1.6 billion. Today, there are over 40 public fabless companies, 31 of which are included in this composite, with a total market capitalization of $22.7 billion and over $6.3 billion in revenues, representing about five percent of the total semiconductor industry.
FABLS(SM) is comprised of public semiconductor companies that have fabless charters with market capitalizations in excess of $100 million.
"When the FSA was formed in 1994 to represent the fabless community, these companies did not garner much respect and credibility on Wall Street," stated Jodi Shelton, FSA executive director. "Today, this is a highly praised model and there are dozens of success stories. The success has really been a function of the simultaneous growth of the foundry model that is supporting this group with industry leading-edge technology. We believe that Wall Street will appreciate this type of distinction between the fabless community and the rest of the semiconductor industry," said Shelton.
"NationsBanc Montgomery Securities grew up with the semiconductor industry in Silicon Valley," said Jon Joseph, Senior Managing Director and Senior Semiconductor Analyst for NationsBanc Montgomery Securities. "We were an early supporter of the fabless semiconductor model and have had the pleasure of being associated with several dozen of these companies over the last decade. This Index provides a measurable benchmark of a high growth, clearly differentiated segment within semiconductors. This will be the future measure of semiconductor growth against which all other device companies are compared. It has been our pleasure to work closely on this project with the FSA, which has long served as a premier industry trade organization," said Joseph.
On May 15, 1998, FABLS(SM) was set with a benchmark value of 100 and is maintained in real time by Bridge Information Systems. It is updated at the end of each quarter. Changes and additions of initial public offerings, delistings, stock splits and stock dividends are implemented by NMS on a quarterly basis. Should a company fall under a $100 million market capitalization for two consecutive quarters, the company is automatically removed from the Index.
The NMS/FSA Fabless Stock Index is price-weighted and represents the purchase of equal share amounts of each listed company (i.e., 100 shares of each stock). The Index, therefore, reflects equal price movements in the stocks, without regard for market capitalization, which should highlight the dynamic growth of its members.
The Index will be available on the NMS Web site at http:\\www.nationsbancmontgomery.com and on a Bridge terminal under the ticker FABLS(SM), on Bloomberg under FABLS and from the FSA Web site at http:\\www.fsa.org.
Fabless component securities currently included in the Index are: 3Dlabs (TDDDF, 3Dfx Inter-active (TDFX), 8x8 (EGHT), Actel (ACTL), Adaptec (ADPT), Alliance (ALSC), Altera (ALTR), Benchmarq (BMRQ), Broadcom (BRCM), C-Cube Microsystems (CUBE), Cirrus Logic (CRUS), DSP Group (DSPG), ESS Technology (ESST), Exar (EXAR), Galileo Technology (GALTF), Genesis Microchip (GNSSF), Integrated Circuit Systems (ICST), Integrated Silicon Solution (ISSI), Lattice Semiconductor (LSCC), Level One Communications (LEVL), MMC Networks (MMCN), NeoMagic (NMGC), Oak Technology (OAKT), PMC-Sierra (PMCS), Power Integrations (POWI), Qlogic Corporation (QLGC), S3 (SIII), SanDisk (SNDK), Transwitch (TXCC), Xilinx (XLNX), Zoran (ZRAN).
About the FSA
The Fabless Semiconductor Association was formed in July 1994 by industry leaders wishing to achieve a more optimal balance between wafer demand and capacity for fabless companies. The FSA represents an exploding industry consisting of over 150 North American fabless companies. The mission of the FSA is to stimulate technology and foundry capacity by communicating the future needs of the fabless semiconductor segment in terms of quantity and technology; to provide interactive forums for the mutual benefit of all FSA members; and to be a strong, united voice on vital issues affecting the future growth of fabless semiconductor companies. The FSA can be reached on the World Wide Web at fsa.org.
About NMS
NationsBanc Montgomery Securities LLC (NMS), a subsidiary of NationBank Corporation, is a full-service investment bank and brokerage firm with approximately $800 million of regulatory capital. The company provides research, trading and issuance in the equity and fixed-income markets (high yield, emerging markets, high grade and mortgage-backed markets). Other services include M&A advisory, financial buyer coverage, loan syndications, global investment banking, real estate finance, mortgage finance, money markets and the primary dealer.
Through NationsBank, NMS clients can also access products and services that include senior bank debt, bridge financing, real estate banking, treasury management, trade finance and risk management (derivatives products and foreign exchange).
NMS is a registered broker-dealer with the Securities and Exchange Commission and is a member of the National Association of Securities Dealers and the New York Stock Exchange. NMS employs more than 2,700 investment professionals.
NMS has been the leading underwriter of semiconductor and semiconductor capital equipment companies in the 1990s, according to Securities Data Corporation. The firm has lead or co-managed 58 transactions for such companies, totaling nearly $4 billion, since 1990. |
