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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: Jim McMannis who wrote (90881)	2/1/2000 1:32:00 PM
From: greg nus	Respond to of 1572336

here is a new issue selling for more than AMD with only 14 million in sales. Quantum Effect, based in Santa Clara, Calif., makes high-speed microprocessors, or chips, used in computers, networking infrastructure equipment and other communications equipment. The company and Morgan Stanley Dean Witter, the primary underwriter for the transaction, brought in $48 million on 3 million shares. Quantum Effect increased its initial offering price to $16 from the $10-$12 range as institutional investors opened their arms and wallets to the chip maker. The chip company with $15.4 million in 1999 fiscal sales, wades into a market with aggressive big players like Intel (INTC:Nasdaq - news) and Advanced Micro Devices (AMD:NYSE - news) lurking. It is focusing on the high-end markets like internetworking, Windows CE, high-speed printers, games, Internet TV and high-speed communications devices. Quantum Effect will have to quickly build and diversify its customer base to meet the cutthroat challenges. Currently, WebTV Networks accounts for about a quarter of sales in the sector, Cisco Systems (CSCO:Nasdaq - news) brings in 15% of sales and EchoStar Communications (DISH:Nasdaq - news) another 10%. Quantum Effect receives royalties from fellow chip maker Integrated Device Technology , which account for 20% of sales