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

To: Beltropolis Boy who wrote (423)	3/29/2000 9:23:00 AM
From: SJS	Read Replies (1) \| Respond to of 1805

CSFB analysis of AMCC this morning: ___________________________________ Applied Micro Circuits (AMCC-$142- $16.7B-Strong Buy) Juniper Business Exemplifies AMCC?s Impressive Design Wins FY00E: $0.38; FY01E: $0.70; FY02E: $0.95 FYE: March ú We have confirmed from industry sources that AMCC?s SiGe-based, OC-192 transmitter and receiver chips are providing the high-speed physical layer interface for Juniper's recently introduced M160 router, extending its relationship with this important up-and-comer from its initial design wins (most recently with JNPR?s M40 router). We believe that while AMCC worked closely with JNPR on the specs for the M160?s PHYs, its chips were probably sold in a module form through another OEM to JNPR. ú In addition, we believe that AMCC?s Cimaron unit?s Missouri chips are enabling framing capabilities on Optical Network?s (a privately held start-up) recently introduced product line. ú While we anticipate that JNPR, as well as SCMR, will become top 5 customers for AMCC in the coming quarters, we maintain that these sales should remain under 10% of total revenues given the equally fast growth at its other customers with more mature distribution systems, such as Nortel (already ~40% of sales), Cisco (which through its Pirelli, Cerent, and Monterey acquisitions should become a 10%+ customer this quarter or next), and LU (also nearing 10% of revenue). ú We firmly reiterate our Strong Buy rating as AMCC continues to exceed even the highest expectations. Although JNPR?s initial contribution is already incorporated into our estimates for this quarter, given that JNPR cited multiple customers for the M160, this robust design win could boost our conservative FY01 sales estimate for the company by several million dollars, enabling AMCC to potentially exceed our 60% Y/Y revenue growth for FY01 of $269MM.