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Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: Percival 917 who wrote (9031)	10/27/1999 10:50:00 PM
From: DownSouth	Read Replies (1) \| Respond to of 54805

Some encouragement on the PMCS front--an upgrade and some rationale from Bulldozer, my favorite PMCS threadster: 127.0.0.1:3456/SI/~wsapi/investor/reply-11721441 TURNS OUT THAT PMCS IS A BENEFACTOR OF THE WIRELESS EXPLOSION! * Wireless is coming on as a driver for the broadband network. PMC-Sierra, both as an ATM provider, and through its multi-channel Vortex chipset features, is being heavily deployed in base stations. * Goodbye Class 5 switch, hello convergence of voice, data, and video. ATM technology is the only carrier class (99.999% reliability) way to converge voice, data, and video. PMC's products are the most compelling, offer the widest range of speeds, and deliver the highest layer capabilities. Its Hard To Argue With 700% Increase In Demand For Infrastructure Capacity. The impact of wireless traffic moving onto the Internet, deployment of high speed cable modems/xDSL technologies, increasing numbers of individuals logging onto the Internet and staying logged on longer, and the explosive growth of E- commerce all represent key drivers behind a 700% increase in demanded capacity in the telecommunications infrastructure, according to Nortel which reported yesterday. PMC-Sierra, because of its exceptionally strong positioning in ATM, SONET, and wireless base station applications, is uniquely positioned to capitalize on the infrastructure build out to meet this demand. Gross margins of 79.4% and moving higher, attest to the value of PMC-Sierra products in broadband convergence technologies. Our Near Term and Long Term Expectations for the Company Continue to Brighten. We know of no other broadband ASSP (Application Specific Standard Product) semiconductor provider that has been enabling the broadband age longer, or with more alacrity, than PMC-Sierra. It's chipsets dominate the ATM Phy (physical layer), and are also dominant in the adaptation layer (layer 2 applications such as policing, monitoring, controlling, routing, and traffic management) where products such as the RCMP and ATLAS families are peerless. With the IGT and Abrizio acquisitions creating a clear roadmap from these entrenched areas to a new wave of opportunities in higher layer switching applications, we are taking this opportunity to raise both out near term and longer term outlook for the company. We are raising our December quarter EPS estimate $0.01 to $0.28 from $0.27, and our fiscal 2000 EPS estimate $0.03 to $1.29 from $1.26. The Significance of ATM Should not be Underestimated. ATM (Asynchronous Transfer Mode) is the world's only reliable means of delivering converged voice, data, and video through the telecom infrastructure. In their September quarter conference calls, both Lucent and Nortel highlighted the rapid build out in the ATM core that is replacing the classic Class 5 switches that were designed to carry intermittent telephone traffic and not continuously streaming data traffic. ATM delivers the smart bandwidth capacity the world needs today...