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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: BostonView who wrote (1811)	6/29/2000 5:26:00 PM
From: BostonView	Read Replies (1) \| Respond to of 2882

Analog Devices Falls After Ericsson Says Growth Could Slow quote.bloomberg.com Norwood, Massachusetts, June 29 (Bloomberg) -- Shares of Analog Devices Inc., a maker of high-speed communications chips, fell 5.6 percent after top wireless-network equipment maker and customer Ericsson AB said industry growth may slow. Analog Devices shares fell 4 11/16 to 78 11/16 on the New York Stock Exchange. Its shares have gained 69 percent this year and have more than tripled in the past 12 months. Ericsson American depositary receipts fell 1 3/8 to 18 11/16. The company, whose customers in addition to Ericsson include Nortel Networks Corp. and Alcatel SA, gets about 45 percent of its revenue from sales of communications equipment. Analog Devices' sales to that industry are rising 70 percent to 80 percent a year, said Chase H&Q analyst Lucas Ward. The Norwood, Massachusetts- based company had 1999 sales of $1.45 billion. ``It's probably fair to draw the connection'' that Ericsson's announcement is hurting Analog Devices' shares, said Ward, who has a ``strong buy'' rating on the company. ``People worry that growth for handsets may not be at the high end of aggressive forecasts.'' Ericsson President Kurt Hellstroem told Swedish newspaper Dagens Industri that ``growth in the cellular market runs the risk of being damped as a consequence of the high charges'' that European phone companies must pay for permits to offer fast Web browsing and video on mobile phones. Such licenses recently sold for $35.5 billion in the U.K.; estimates say phone companies could pay more than $100 billion after auctions are held in Germany, France and Italy. The steep license costs and the $200 billion for building new networks are raising concern phone companies will have to charge more for their services than some people are willing to pay. Chips made by Analog Devices are used in wireless telephones, modems, digital VCRS, digital cameras, DVD players, flat panel displays such as those used in laptop computers, medical equipment and automatic test equipment. ___ BV