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To: Johnny Canuck who wrote (23285)	8/31/1999 2:36:00 PM
From: Iris Shih	Read Replies (1) \| Respond to of 68461

MMC Networks Tumbles Nearly 40 Percent NEW YORK (Reuters) - Shares of MMC Networks Inc. (Nasdaq:MMCN - news) tumbled nearly 40 percent in Tuesday trade, making the networking equipment maker the biggest loser on Nasdaq. Shares fell 19 1/4 to hit 30 3/4, on more than six times its average daily volume. MMC hit a 52-week high of 57 Thursday, up from a year low of 7 3/4. Company officials did not return calls for comment on the stock activity. Investors on Internet chat rooms said the slide in MMC's stock price is related to a deal struck earlier between International Business Machines Corp. (NYSE:IBM - news) and Cisco Systems Inc. (Nasdaq:CSCO - news) for network technology, parts and services. Both IBM and Cisco are large customers for MMC, according to the California-based company's federal filings, and their deal might mean they will make the network technology in-house. The deal calls for IBM's Global Services arm to form an alliance with Cisco to provide a full spectrum of network integration services to Cisco's corporate customers and telecommunications services suppliers. MMC warned in its quarterly report filed with the Securities and Exchange Commission that many of its existing customers, among others, are developing products to perform the same or enhanced functions as MMC products. ''To the extent we fail to overcome these challenges, there would be a negative effect on our business and operating results,'' the company said in its last quarterly filing. Small investors also said the plummeting price may be linked to an announcement Tuesday from its competitor, Galileo Technology Inc. (Nasdaq:GALT - news), about a new network management product.