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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: PoetTrader who wrote (3453)	4/22/2000 10:05:00 AM
From: John Carragher	Read Replies (1) \| Respond to of 3818

barron's top 500 companies pmcs #2 notes from article PMC-Sierra, No. 2 on Barron's 500, also sells chips that empower communications over the Information Highway. But the British Columbia company is one of a new breed of "fabless" chip producers, making it a pure-brain shop. While the company draws up detailed blueprints for chips, it subcontracts the actual fabrication to Asia-based semiconductor outfits. That frees PMC-Sierra from the awesome expense of building and rebuilding its own fab plants every half-decade or so, to keep up with changing technology. The company's main market is also somewhat different. PMC-Sierra makes, designs and sells chips for network equipment builders such as Nortel Networks, Cisco Systems and Lucent Technologies. It got into this business in the mid-1990s, when the firm presciently saw its main business at the time-making chips for consumer modems -- as mature. And, happily, the new market it targeted -- networking communications chips -- was just about to take off, along with the Internet. Sales at PMC-Sierra rose 62%, to $262 million, in 1999, but the trend clearly accelerated in the year's second half, promising more good news in 2000. Earnings, meanwhile, jumped 56% to 47 cents per share in '99, and analysts look for the company to advance a further 68% or more to 79 cents a share this year and $1.12 in 2001. That kind of growth didn't protect the stock recently: After rising from around 15 in early '99 to a high of 255 1/2 earlier this year, PMC-Sierra now trades around 145. "Our business of broadband semiconductor chips is the sweet spot in the market," says PMC-Sierra CEO Bob Bailey. "We'll see market growth of at least 75% this year, probably more, and it won't stop there. "Some say we are the next Intel," Bailey adds with no false modesty. "And the truth is that our very high growth rate, times our very high margins, creates a momentum for market share and earnings. We are changing the face of our world." "This is one of my favorite long-term holdings," says Jeffery Lipton of Hambrecht & Quist. "It's a great company with a great management team and really great prospects. What's different about this company is that they truly understand the system they work in; they know all the hooks and details in a way few others do. I'm looking for top-line growth of close to 100% this year. "As for the stock price, in this market, it's hard to go out on a limb," he adds. "Still, this a stock that a lot of people are in love with, and have been waiting on the sidelines for an opportunity to get in. This could be that opportunity."

To: PoetTrader who wrote (3453)	4/22/2000 4:37:00 PM
From: yoda_3355	Respond to of 3818

I don't wish to sound like a spammer (I think that I've proven to be a true staunch supporter of PMC-Sierra), but I operate a club over at Yahoo focused primarily on communications technologies that can expand anyone's tech knowledge. In addition to obvious Comm ICs like PMC, Broadcom, AMCC, Vitesse, the club features frequent discussion about wireless infrastrucutre (RFICs, PAs, software), fiber optics (component/module corps, systems providers), storage (NAS, SANs, FC), e-business software, and others that I'm not personally familiar with. I (and 7 fellow cofounders) run it and have full jurisdiction to delete harmful members, offensive/spammish messages, etc. A stereotypical Yahoo thread this is not. At the very least, take a gander. I'll still be here at SI, but I post there first: clubs.yahoo.com