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To: mattie who wrote (27429)	7/24/2000 12:51:28 PM
From: Johnny Canuck	Respond to of 68284

mattie, I don't follow XICO. I had a look at the press release. This new product does not compete with AMCC. AMCC is higher up the food chain. From a product stand point XICO has always been considered a niche player. Most of their chips are interesting variations on existing solutions with higher integration. I would be a little worried that they just sold their Fab facilites. I assume they have guranteed access to a certain amount of capacity in the Fab, but Fab capacity is getting tight according to all the calls I have heard so far, and business is going to higher margin products right now. I am not sure XICO has the pull to grow revenues at 40 percent given the capacitiy constraint and aeven given the potential improved gross margins on the new optical chip. **************** siliconinvestor.com "The planned sale of our Milpitas fab marks a significant milestone for the Company as one of our major initiatives is being realized," commented Bruce Gray, acting President. "With the sale of our fab, 100% of our wafers will be derived from foundries, allowing us to reduce product costs. Moreover, with the outsourcing of manufacturing we will be able to increase our focus on the design and marketing of new products." 10:12 ET Xicor (XICO) 7 1/8 +7/16 (+6.5%): Announces launch of a new line of programmable mixed signal products that will simplify fiber optic modules. The products are designed to integrate several major control and monitoring functions for laser diode modules in fiber LAN and gigabit Ethernet applications