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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Bulldozer who wrote (2673)	8/24/1999 10:43:00 PM
From: Bulldozer	Read Replies (1) \| Respond to of 3818

And from Newbridge's report tonight - Sales in the part of Newbridge's business that includes ATM products rose to $357 million, or 72 percent of total revenue. That's up from 52 percent a year ago, Chief Financial Officer Ken Wigglesworth said on a conference call. Newbridge gets about 80 percent of its sales from telecommunications-services companies and the rest from large businesses. Revenue from ATM products more than doubled from a year ago, Newbridge said. Officials declined to give specific figures for the ATM switches, though the company said ATM comprised about 75 percent of its sales in that product area. Hmmm what do ya know - much to the dismay of the IP only crowd, looks like ATM just won't go away. btw, this was also confirmed to me today as I spoke to a Frontier Comm salesman at the Telecom convention in NYC - they cannot provision fast enough to satisfy the demand - even after huge DWDM upgrades (Pirelli 192's), they are still always playing catch-up. Together with Global Crossings, they are building a worldwide ATM, IP and FR network to give the customer whatever they want, wherever they want it. At times, they even get deals referred from other IXC's , who can't provision fast enough. And ol PMC at the beginning of the food chain , will benefit the whole way. BD

To: Bulldozer who wrote (2673)	8/25/1999 10:11:00 AM
From: Wizard	Read Replies (1) \| Respond to of 3818

>>I also think Sequoia was involved with PMC to some extent. Don Valentine of Sequoia sat on the board of Sierra Semiconductor, the modem chipset company and predecessor of what became PMC-Sierra through the acquisition of PMC. The Sequoia/Benchmark web is an important advantage for many of these companies. Those guys work hard and create value.

To: Bulldozer who wrote (2673)	8/27/1999 5:12:00 PM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 3818

>[abrizio] looks like a fantastic addition ... thanks for the data feed, 'dozer. here's another quality piece via techweb, including a few blurbs from bailey. OT: speaking of italy, think i'll cozy up with a nice bottle of sangiovese at il radicchio tonight. heard anything about this year's harvest? this east coast drought is supposed to produce some winners (on our side of the pond for a change). salute, -chris. ----- Two Companies Unite To Expand Broadband Apps 08/25/99, 9:57 a.m. ET By J. Robert Lineback Semiconductor Business News PMC-Sierra on Tuesday announced an agreement to acquire broadband chip supplier Abrizio for $400 million in stock. The surprise move is intended to strengthen PMC-Sierra's position in fast-growing broadband infrastructure applications, said Bob Bailey, president and CEO of the Canadian chip company. Across the industry, little is know about two-year-old Abrizio, which has recently begun shipping its first prototypes of high-speed switching fabric chips to broadband equipment suppliers. Bailey said he believes those products will be officially announced soon. Abrizio's technology has its roots in research conducted at Stanford University for a 1-terabit-per-second switching fabric implemented in CMOS semiconductor processes. Its current foundry is IBM's Microelectronics Division, which is producing Abrizio's chip set with standard 0.25-micron CMOS. "They have assembled an outstanding team of people out of Stanford University, C-Cube, and other places," Bailey said. "They have come up with an amazing product line for broadband switch fabric chips, and the reason we know about them is we have quite a few of our own chips designed into the same systems." Those system are just now in the final development stages, and Bailey said he expects revenue from Abrizio's products to take off in the second half of next year. "The revenue potential will be large because there will be tens of thousands of dollars in potential silicon content per system," he said. Bailey said he believes the acquisition will combine the strengths of PMC-Sierra and Abrizio to give customers a compellingly comprehensive solution to their broadband silicon requirements. "This acquisition is designed to further enhance PMC-Sierra's position in the sweet spot of the semiconductor market -- broadband infrastructure," he said. Bailey said Abrizio's products serve the core of switching equipment, while PMC-Sierra's chips reside mostly on the edge of the network. "This will deepen our penetration in the broadband infrastructure silicon space," he added. Under the agreement, PMC-Sierra will acquire the privately held Mountain View, Calif., company for 4.35 million shares of its stock. The transaction will be accounted for as a pooling of interests. In June 1998, Abrizio raised $6 million in venture funding from Benchmark Capital and Sequoia Capital. Earlier, the company had raised $465,000 in seed financing from a number of Silicon Valley industrialists and private investors to address the need for massive amounts of switching bandwidth in networks. According to PMC-Sierra, Abrizio's TT1 chip set has been designed into broadband equipment by several leading suppliers of switches for Internet, ATM, and other networking applications. Abrizio president and CEO Anders Swahn will report directly to Bailey after the acquisition is completed. "Strategically, it is an excellent fit as our companies have very complementary technology, products and customers," said Swahn, a co-founder of Abrizio. Once the acquisition is completed, Bailey said the Abrizio operation will remain in the Silicon Valley area, where PMC-Sierra also has an operation. He said he hoped the purchase would close within the two weeks. techweb.com