Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: SJS who wrote (1262)	5/2/2000 11:27:00 PM
From: pat mudge	Respond to of 3951

OT (more on BRCM) From Chase H&Q: Announces entry into optical transceiver market: Broadcom announced its entry into the optical networking market with a 10 Gbps Ethernet transceiver. This product is important because it extends the reach, speed, and functionality of Ethernet from teh LAN to the MAN, enabling a number of new, cost-effective applications for Ethernet. It also is the first product from the Company's optical networking business unit. Presently, Ethernet is used in the LAN to communicate at speeds of 10 Mbps, 100 Mbps, or 1 Gbps over copper cabling, or sometimes multi-mode fiber optics. Broadcom is a leader in 10.100/1000 Ethernet over copper products. The MAN and WAN typically communicate at (single-chanel) speeds of 155 Mbps to 10 Gbps (OC-3 to OC-192 SONET transport rates) over single-mode fiber optics. Due to the more stringent specifications associated with telco-grade communications, as well as lower volumes, SONET semiconductors are substantially more expensive than the Ethernet products typically used in the LAN. With this new product, Broadcom is essentially extending the LAN, enabling high-speed (10 Gbps), cost effective communications over distances to 50 km. A number of vendors are designing high-speed Ethernet products, including Ethernet/DWDM, for MAN access applications. The BCM 8010 integrates four transceiver cores, each of which can communicate at speeds up to 3.125 Bbps. It is constructed using a highly cost-effective 0.35 micron CMOS process, rather than the more more expensive and less prevalent SiGe, bipolar, or GaAs processes. This product also includes adaptive equalization technology, which improves performance. The Company indicated this transceiver core will the the basis of high-speed Ethernet, SONET, and Fibre Channel products in the future. Importantly, Broadcom plans to introduce OC-192/192c products over the next six months. While we view the BCM 8010 itself as only peripherally competitive with SONET products from Applied Micro Circuits, PMC-Sierra, Conexant, and to a lesser extent Vitess, future SONET products from Broadcom will more directly compete with these competitors' offerings. Although the 10 Gbps Ethernet standard hasn't yet been ironed out, and we do not expect the market for 10 Gbps Ethernet products to become meaningful from a volume perspective for at least another year, the BCM 8010 is an important initiative for the Company. First, this market is strategic and should become sizeable over time, and Broadcom has an early start. More importantly, this product forms the basis for a number of new products for the optical networking market (including SONET) and will greatly expand Broadcom's total addressable market over time. We reiterate our BUY recommendation on BRCM shares.