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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Kenya AA who wrote (3252)	1/11/2000 11:45:00 AM
From: Neil H	Read Replies (1) \| Respond to of 4710

In today at 47 This from Thomsonswatch 11-Jan-00 11:07:09 This morning, Vitesse Semiconductor reported in-line FY00 1Q results of $0.14 per share. However, VTSS has slipped $2 3/16 to trade at $47 3/8 on heavy volume. In the flood of research notes that hit the wire this morning, a few analysts mentioned hopes of a slight upside report?- in fact, the ?whisper? number for Vitesse?s earnings was $0.15. A shortfall in revenue from the company?s ATE division cut into some of VTSS' earnings. Despite the decline in revenue in ATE, the research notes are upbeat and several analysts have reiterated their positive ratings on the stock. It is worth considering that VTSS has been under pressure during the past several trading sessions on concerns related to the firm?s largest client, Lucent Technologies (LU). While analysts note that the rising revenue from LU (8% sequential growth during FY1Q) it is possible that investors remain concerned that a shortfall in Lucent could present issues with Vitesse. In the pre-trade market, bargain- hunting investors are offering support around $46 3/4-$47, as illustrated on I-Watch. However, the data also indicates a few aggressive-growth investors are looking to pare their positions, offering shares as low as $47 1/4. Institutional investors are active in the session, with block trades contributing to 38% of the total revenue. VTSS has already outpaced its typical volume with over 3 million shares traded compared to the average daily volume of just 2 million shares. Regards Neil

To: Kenya AA who wrote (3252)	1/11/2000 7:17:00 PM
From: SJS	Read Replies (2) \| Respond to of 4710

CSFB report on VTSS: Vitesse Semiconductor (VTSS-$49 9/16, Cap $8.5 B-Strong Buy) Contrary to Fears/Rumors VTSS Reports $0.14 EPS off of Strong Lucent Ramp FY00E: $0.67; FY01E: $1.03 ‡ As we expected, Vitesse's 1QF2000 results came in at $0.14 on revenue of $89 MM. Solid sequential revenue growth of 11% included datacom (up 23%) and contrary to earlier rumors of flat Lucent business, a positive increase from Lucent (up 8%). ‡ After enduring the logistical transition made by Lucent to sub-contractors, that business is now picking up, with other customers (such as Fujitsu and Tellabs) also coming on strong. ‡ We estimate VTSS's total revenues in the March quarter will grow at least 11-12% to nearly $100 MM. OC-192 and datacom should be the fastest growing segments. ‡ With leveraged exposure to the optical market, we feel confident VTSS will hit our $0.16 for F2Q00. Our FY00 EPS estimate is unchanged at $0.67, but we increased our FY01 estimate to $1.03 (formerly $0.98). We reiterate our Strong Buy and increase our price target to $70.