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

To: Raymond Duray who wrote (609)	8/8/2000 10:22:44 AM
From: DiB	Respond to of 1805

OT - JNIC Ray, my take on Jaymark is that eventually these 14+ mln shares will end up being in the float. JNIC will probably do secondary offering which will free up some portion of these shares, then the remaining will be locked up half for 180 days, the other half for 360 days. I am not concerned about all this, because IMO this will allow institutions to take larger positions in JNIC. Right now institutions control only 17% of the outstanding shares. >Another concern that I would have is that while JNIC appears to be doing really well with gross margins, not enough of that revenue is dropping to the bottom line. Here are some fragments from Chase H&Q's report on JNIC (posted in siliconinvestor.com JNI Corporation (JNIC) The Only Thing Growing Faster Than Revenue is Backlog. Reiterate Buy Rating - JNI announced F2Q-00 results of $24M/$0.12, well ahead of our $21/$0.09 estimates. - Results reflect accelerating SAN market and JNI's strong competitive positioning. - Revs increased 30% sequentially fueled by a 107% q/q increase in PCI revenue. - JNI also began recognizing revenue on a sell-out method during F2Q-00. - JNI recently signed global reseller/OEM agreements with Hewlett-Packard and Compaq for PCI and SBus HBAs in Solaris applications, validating the company's strong technology positioning. - While our model reflects some of the expected revenue from these design wins, our expectations are based upon conservative assumptions for CPQ's / HP's ability to penetrate Sun accounts. - Based on the strength of F2Q-00 and OEM announcements, we are increasing our estimates for each of the quarters going forward. We have increased our estimate for F3Q-00 to $0.12 and from $0.10. Our estimates for FY00 and FY01 are now $0.45 and $0.65 from $0.39 and $0.59. FY Ends Dec Current Price $50 52-Week Range $20-115 Market Cap(M) $1,340 Shares Out(M) 26.8 Book Value $2.14 Net Cash/Share $1.72 3-Year EPS Growth 40% CY00 P/E-to-Growth 0.33x 1999 A 2000 E 2001 E Q1 EPS $0.00 $0.08A $0.15 Q2 EPS 0.02 0.12A 0.16 Q3 EPS 0.04 0.12 0.16 Q4 EPS 0.05 0.13 0.18 FY EPS 0.11 0.39 0.65 FY REVS(M) 40.2 89.9 145.5 CY EPS 0.11 0.39 0.65 CY P/E NM 128 77 JNI supplies Host Bus Adapters (HBAs), Application Specific Integrated Circuits (ASICs), and software based upon the Fibre Channel standard for use in Storage Area Networks (SANs). JNI reported outstanding F2Q-00 results. JNI reported F2Q-00 results of $24M/$0.12, well ahead of our $21/$0.09 estimates. Revenue growth of 181% y/y and 30% q/q reflects an accelerating end market for FC SAN products in general and the company's strong competitive positioning. The company's PCI bus products grew 107% over the first quarter, comprising 24% of second quarter revenues up from 16% in F1Q-00, while its SBus host bus adapter (HBA) business remained strong, growing 20% sequentially. Pretax income grew 620% y/y and 43% q/q to $5.2M, with margins expanding from 10.3% to 19.4%. Finally, who do you see as JNIC's most significant competitors? From the horse's mouth: "We face competition for our ASICs from Hewlett-Packard and QLogic. Sun Microsystems is our principal competitor in the SBus host bus adapter market. In addition, Emulex recently announced that it is entering the SBus host bus adapter market. Our principal competitors in the PCI bus host bus adapter market are Emulex, QLogic, Interphase and Hewlett-Packard. Our products may also compete at the end-user level with other technology alternatives, such as SCSI, which are available from companies such as Adaptec, LSI Logic and QLogic as well as a number of smaller companies."