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Technology Stocks : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: Raymond Duray who wrote (320)	2/7/2000 10:03:00 AM
From: Beltropolis Boy	Read Replies (1) \| Respond to of 1805

for what it's worth (almost $6 at the moment) ... ----- RESEARCH ALERT - Applied Micro reinstated. 02/07/2000 Reuters English News Service NEW YORK, Feb 7 (Reuters) - Credit Suisse First Boston analyst Charlie Glavin reinstated coverage of chip maker Applied Micro Circuits Corp. on Monday with a strong buy rating. - set $240 price target. - reinstated cover after completion of secondary stock offering. - raised fiscal 2000 earnings-per-share (EPS) outlook to $0.76. - boosted fiscal 2001 EPS estimate to $1.36. - shares closed on Friday at 185-13/16.

To: Raymond Duray who wrote (320)	3/6/2000 10:13:00 AM
From: Beltropolis Boy	Read Replies (2) \| Respond to of 1805

nice piece out of EET you might enjoy; unfortunately, i can't pin down a hotlink and had to cull it out of my company's dj newswire subscription. with our kind of currency, i wouldn't mind seeing a strategically smart acquisition or two. (like my opinion matters.) owe you a line, -chris. ----- Talks under way with several companies; joint technology pact possible -- AMCC seeks SiGe capacity, mulls acquisitions Robert Ristelhueber 03/06/2000 Electronic Engineering Times Page 46 SAN FRANCISCO - Applied Micro Circuits Corp. is in discussions with several companies to acquire additional silicon germanium (SiGe) production capacity and is actively looking for acquisition candidates, a company executive said last week. AMCC (San Diego) is currently developing optical circuits using the SiGe technology of IBM, said Bill Bendush, chief financial officer. "When we start ramping meaningful production in a couple of years, we probably don't want to be sole-sourced to IBM, so we're out actively talking with a number of companies that are doing silicon germanium development," he told an audience at the Robertson Stephens Technology Conference here. "This could involve some sort of investment in the tens-of-millions-of-dollars range, leading to a capacity and technology agreement. It could be a joint facility. Our last choice would be to build our own fab, but we'll only do that if we can't get access to silicon germanium in some other fashion." Bendush declined to identify the parties AMCC is talking with but said they don't include Siemens or Atmel. The agreement with IBM runs until the end of 2003, Bendush said. Currently, 85 percent of AMCC's revenue comes from products built with bipolar and BiCMOS processes at its own fab in San Diego, with the remaining 15 percent coming from CMOS circuits built at outside fabs. Two-thirds of current R&D, however, is in CMOS, with the other third in SiGe, Bendush said. The company doesn't intend to build CMOS chips in a fab of its own. Higher layers, speeds AMCC is looking to acquire companies that supply circuits "that are at higher layers of the network and higher speeds," he said. An acquisition could take place using cash or a combination of cash and stock, Bendush said. Much of AMCC's recent growth has been powered by its relationship with Nortel, Bendush said. "One of the things we tell investors is that probably the single largest risk to our stock is the concentration with Nortel." In the most recent quarter, Nortel represented 40 percent of AMCC's revenue, compared with 25 percent a year ago. "What's happening is that Nortel's been extremely successful in their optics business," Bendush said, noting that Nortel's sales in that sector grew from $1 billion in 1998 to $3 billion last year, with forecasts of $9 billion to $10 billion this year. Alcatel and Marconi are AMCC's next-largest customers. AMCC also spends time cultivating relationships with emerging companies, Bendush said. "They are often the leaders in driving paradigm shifts in the industry," and they tend to buy the company's system-level products, he said. "Lastly, you never know who's going to buy them," he added, noting that AMCC became a Lucent customer because Lucent acquired Nexabit Networks, which was using AMCC's chips.