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Technology Stocks : Newbridge Networks -- Ignore unavailable to you. Want to Upgrade?

To: zbyslaw owczarczyk who wrote (12064)	6/28/1999 8:10:00 PM
From: pat mudge	Read Replies (1) \| Respond to of 18016

Welcome comments from chip-savants: June 25, 1999 Dow Jones Newswires HEI Inc. Up 65% On News Of High-Frequency Tech License NEW YORK -- HEI Inc. (HEII) shares reached a new 52-week high Friday after the company reported it acquired an exclusive license to a high-frequency chip carrier. The chip carrier, which was developed by Micro Substrates Corp.'s Circuit Components Inc. unit, can be used for applications in local multipoint-distribution services, ultra high-speed Internet routing and satellite communications. Local multipoint-distribution services, or LMDS, is a wireless technology for delivering telephone calls and high-speed data to homes and businesses. Companies such as Sprint Corp. (FON), the Liberty Media unit of AT&T Corp. (T) and Nextlink Communications Inc. (NXLK) recently have invested billions of dollars in LMDS properties. The license furthers HEI's plan to enter the wireless market, said President and Chief Operating Officer Donald R. Reynolds. Currently, the Minneapolis company makes ultraminiature microelectronic components and products primarily for the medical and traditional telecommunications markets. HEI also acquired a 28% stake in Micro Substrates, a privately held development company based in Tempe, Ariz., for $1.5 million, Reynolds said. Analysts who follow HEI said they hadn't had time to fully evaluate the impact the license will have on the company's future. R.J. Steichen analyst Ernest Andberg said the market for the chip technology is so new that its potential is open to interpretation. Clinton H. Morrison, an analyst at John G. Kinnard & Co., said it will be "a ways off before (the license) will be meaningful to its bottom line." HEI expects to begin making the chip carrier, known as VIA/BGA, at its Minneapolis facility in mid-2000. Reynolds said the company plans to begin working with customers and taking bids for prototype orders now. "Over the next several years, we expect sales to ramp-up higher and higher," he said. Recently, HEI shares were up 66.2%, or 3 1/16, at 7 11/6 on Nasdaq-volume of 193,000, which compares to average daily volume of 7,272 shares. During trading Friday, HEI shares traded as high as 8 3/4, topping the stock's prior 52-week high of 7 3/4 achieved on July 13. HEI Inc.'s Reynolds said the design of the VIA/BGA chip carrier allows the microchips to be assembled in a modular structures. According to Reynolds, a modular structure is superior to other board configurations because if one integrated circuit is not functioning only that part will need to be replaced. The chip carrier was developed for applications in the 2 gigahertz to 40 GHz frequencies. The higher frequencies allow for the delivery of greater amounts of data with less interference.