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Technology Stocks : SWKS - Skyworks Solutions, Inc (was AHAA) -- Ignore unavailable to you. Want to Upgrade?

To: All Mtn Ski who wrote (688)	10/6/2000 1:33:16 PM
From: Marc	Read Replies (1) \| Respond to of 1698

Can't buy more right now, got some November 40$ call instead.

To: All Mtn Ski who wrote (688)	10/11/2000 12:02:31 PM
From: Czechsinthemail	Respond to of 1698

Motorola revisited -- from Briefing.com: Motorola (MOT) 26 1/4: The stock is trading off $5 in the pre-market on comments from the company's conference call this morning. In sum, three key points were made on the call: 1) the company is not going to make good on its promise for double-digit operating margin for handsets in Q4, 2) it's reducing 2001 sales and EPS forecasts and 3) it's reducing projections for the overall market for cell phone sales. Handset operating margin has been the key metric for the company's performance. Earlier in the year, the company had forecast double-digit margins by Q4 - it's not going to happen. The new forecast is 6.5% in Q4. The company also said that it still hopes to hit 10% long term, but no specific timetable was given this time. The company's new forecast for 2001 sales and EPS were lowered to $44 bln and $1.20, respectively, while the company's overall market outlook for handset sales were slashed to 410-425 mln in 2000 and 525-575 mln in 2001. The 2001 figure is down significantly from the 600-650 mln guidance provided only a month ago...As for Q3, they matched consensus of $0.26 but how they got there was the problem. Handset sales were $3.2 bln vs $3.6 bln consensus. Even more importantly, handset margin came in at 5.7% while analysts were looking for 5.5%-6.0% and since the company rounds off to the nearest whole number, they call it in-line with their earlier forecast. Not great as they really needed to top 6% for us to get excited. The shortfall was due to very weak European sales. But more disconcerting is that orders from Europe were significantly lower. The Broadband segment helped to mitigate the losses as that segment posted a 15% upside surprise....Other items: the weak Euro hurt EPS by $0.01 in Q3 and should hurt Q4 by $0.03; on the positive side, average handset selling prices were up slightly vs. Q2 and 10% yoy - guidance wasn't specific other than returning to normal in Q4 and next year.....Expect Ericsson (ERICY), but even more so Nokia (NOK) to be hurt by MOT's comments not only because Nokia has a lot of exposure in a weak Europe, but MOT's guidance on the overall sector will especially hurt as it was not expected to reduce its forecast so much so quickly....We expect downgrades on Motorola and Q4 and 2001 estimate cuts this morning. Here is the impact on EPS of the key metrics for Q3.