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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: JK who wrote (2703)	7/12/1999 11:13:00 PM
From: A. Edwards	Respond to of 4710

Merrill's morning edition on VTSS: Vitesse is scheduled to report June quarter earnings after the close today. We are looking for net earnings of $19.36 million, or $0.24 per share, on revenues of $73.8 million. Although we are looking for good performance from all three of the company's business areas, we would in particular expect to see some improvement in visibility from the company's automated test equipment end market, which consists mostly of semiconductor test equipment. We also expect to hear a great deal from the company this quarter regarding efforts to expand from the core gallium arsenide semiconductor business into conventional CMOS semiconductor manufacturing. The recent change in Vitesse's relationship with Lucent - Lucent is moving a portion of its production to contract manufacturing - means that Vitesse will likely be unable to report the detailed bookings information that it has in the past. We believe investors should not interpret changed disclosure as a sign of problems at the company. Formal bookings visibility is declining for several reasons, not the least of which is Vitesse's own success in ramping its new fab. Investors should not worry - we do not believe that Vitesse's growth prospects have changed at all, and we applaud the company's efforts to become more responsive to customer needs. (Joe Osha 212-449-0930)

To: JK who wrote (2703)	7/12/1999 11:27:00 PM
From: Beltropolis Boy	Respond to of 4710

fwiw ... ----- Monday July 12, 6:23 pm Eastern Time AFTER THE BELL - Vitesse slips NEW YORK, July 12 (Reuters) - Shares in integrated circuit maker Vitesse Semiconductor Corp. slipped in after-hours U.S. trading despite reporting higher quarterly earnings, dealers said Monday. Vitesse, which beat market estimates by one cent, was down 2-3/4 at 69 in moderate trading after closing at 71-3/4. Vitesse reported a profit of $0.24 a share for the fiscal third quarter, $0.01 more than the consensus estimate among analysts set by First Call Corp., and $0.06 more than the same period a year ago. Steve Allen, an analyst who covers the company for Moors & Cabot/Dakin, said he did not see any reason why the stock would be trading lower. ''There is no sign of any uncertainty or hesitation about meeting next quarter's numbers,'' he said.