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To: Scrapps who wrote (6930)	9/7/1999 4:21:00 PM
From: Tim McCormick	Read Replies (2) \| Respond to of 9236

I'm not sure I understand the implications of your referenced article. I'll have to study the issue further. This came out on Bloomberg.com-I'm not sure what it means either, I guess I better go back to taking ginseng. :) Red Bank, New Jersey, Sept. 7 (Bloomberg) -- GlobeSpan Inc., a designer of computer chips for high-speed Internet access, surged as much as 29 percent on optimism for orders from No. 1 phone-equipment maker Lucent Technologies Inc. The shares rose 21 1/4 to 99 in late trading, after touching a record 100 1/4. The Red Bank, New Jersey-based company went public in June at $15 a share. GlobeSpan is designing chips for a new line of Lucent equipment that carries voice calls using so-called digital subscriber line technology, or DSL, said analyst Elias Moosa of Thomas Weisel Partners. GlobeSpan's stock has risen more than sixfold amid enthusiasm for its chips that enable high-speed data transmission over copper telephone lines. ''To the extent that Lucent is successful, it can reflect onto GlobeSpan,'' said Moosa, who rates GlobeSpan shares ''buy.'' GlobeSpan Chief Financial Officer Bob McMullan said the company ''will benefit as one of a couple of vendors to Lucent'' for a new line of DSL equipment. He declined to elaborate on the specifics of the company's relationship with Lucent on the new product line. Lucent spokesman Bill Price said Lucent is ''continuing to evaluate a number of suppliers for the chips'' used in its new Stinger products unveiled today. GlobeSpan GlobeSpan originally was part of AT&T Corp. AT&T spun off Lucent in 1996. Lucent then sold the business that contained GlobeSpan to Texas Pacific Group, which spun off GlobeSpan as a separate company. Lucent accounted for about 27 percent of GlobeSpan's sales in 1996, according a GlobeSpan regulatory filing. In 1997 and 1998, Lucent wasn't one of GlobeSpan's top three customers, the filing said. Lucent's Stinger products let a phone company give voice calls on data lines higher priority than other information. The system is designed to ensure the quality of the call is as good as on a regular voice network. GlobeSpan's competitors include Alcatel SA, Analog Devices Inc., Motorola Inc., Texas Instruments Inc. and others. Cisco Systems Inc., the world's largest maker of equipment that runs the Internet, accounted for 48 percent of GlobeSpan's $31.5 million in sales last year, according to the filing. The Lucent equipment ''can diversify GlobeSpan away from being a Cisco-concentrated story,'' Moosa said. Shares of Murray Hill, New Jersey-based Lucent rose 1 1/4 to 67 1/4.