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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: JOHN N. who wrote (7152)	9/21/1999 8:51:00 AM
From: Toni Wheeler	Read Replies (1) \| Respond to of 8193

JOHN, You have good questions and certainly legitimate concerns. I hope that someone more directly familiar with CRUS products or who professionally can compare the competition will comment on your post ... IMO, when management reorganized, the changes made and the shifts in the business focus have now shown results. Do we now have to wait for official filings before we know for sure?? Ted, Calvin, Grand P ... give us your 2 cents ...!!

To: JOHN N. who wrote (7152)	9/22/1999 12:19:00 AM
From: Grand Poobah	Read Replies (1) \| Respond to of 8193

In audio (several recent chip announcements), CRUS is number one in the field. But that means they have maybe 20% market share versus 18% for the number two in a field that is experiencing big price pressures (partly CRUS fault--they have gained market share by underpricing competitors). In magnetic storage, CRUS is maybe number three or four, after TXN, LU, and maybe STM. (I don't count IBM because their market is their own drives.) CRUS has good technology, up there with the best, and sometimes ahead of the pack. They are the only ones to do their read channels in CMOS, they have a decent PRML patent portfolio and design team, and they were first with an integrated controller-channel chip. However, their product/marketing strategy has been questionable because they have lost a big customer (Seagate) and are struggling to keep the other (WD). They have made up for this somewhat by capturing some of the Japanese market (Fujitsu). You will not see design win announcements from mass storage because too much of the information is proprietary belonging to their customers. In optical storage, CRUS seems to be doing well. They are dominant in CD-R/W. I am not as familiar with their position in DVD. However, optical storage is currently small revenue-wise. In ADC/DAC technology, CRUS is again a world leader, as evidenced by their patent portfolio which has gained exposure in the recent lawsuits. You see a lot of chip design announcements here, but each one is usually small volume and therefore only contributes a small but profitable piece to the bottom line. Each one also often gets sold through distributors to tens or hundreds of companies, which is why you won't see design win announcements. CRUS has been hit here recently by low oil prices, affecting its big customer Schlumberger in the oil exploration business. Hopefully with oil prices having gone higher and seemingly inclined to stay there, oil companies will begin exploring for oil again. Regards, G.P.