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

To: SJS who wrote (516)	6/7/2000 12:48:00 PM
From: William F. Wager, Jr.	Read Replies (1) \| Respond to of 1805

Dow Jones Newswires -- June 7, 2000 Applied Micro Down 7%; Drop In Sales To Nortel Seen Dow Jones Newswires By Miatta V. David NEW YORK -- Applied Micro Circuits Corp. (AMCC) shares continued to fall Wednesday after news that the maker of chips for telecommunications equipment is expected to see slower growth in sales to its biggest customer, Nortel Networks Corp. (NT). In a research note Wednesday, PaineWebber Inc. analyst David Wong said sequential growth in Applied Micro business's with Nortel could drop to as low as 10%, but "non-Nortel business is showing very strong strength." Applied Micro remains likely to achieve or exceed 20% sequential overall revenue growth in its fiscal first quarter ending June 30, he said. Wong maintained his attractive rating, with a 12-month share-price target of $175. Following a 12.9% drop Tuesday, the stock was recently down 6, or 5.6%, at 100 13/16 on volume of 9.5 million shares. Average daily volume is 4.8 million. Banc of America Securities also reiterated its buy rating on the stock Monday. Applied Micro officials were not immediately available for comment. According to a research note by Banc of America Wednesday, Applied Micro shares fell late Tuesday following a management meeting with analysts at the Supercomm conference in Atlanta. At the meeting, analysts said, Applied Micro gave guidance of 10% sequential growth in Nortel sales, down from a 34% increase in the March quarter and lower than analysts expectations' of a mid-teens rise. Previous guidance from the company had been about 20% sequential growth, Frost Securities analyst Cody Acree said in his research note Wednesday. "Even with slower Nortel sales, the strength of non-Nortel business is likely to drive total sequential growth in the 25% range," Acree said in his note. Acree, who added that bookings and backlog continue to show strong strength, expects a June quarter book-to-bill of about 1.3. "Overall," he said, "yesterday's sell-off was in reaction to a temporary Nortel transition issue that should be largely irrelevant by the September quarter." Acree reiterated his strong buy rating and 12-month price target of $162 on the San Diego company. Meanwhile, Nortel shares were recently down 3/4, or 1.3%, at 57 3/4 on Nasdaq volume of 2.5 million, compared with a daily average of 14.7 million. - Miatta V. David, Dow Jones Newswires, 201-938-5175