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

To: Don Miller who wrote (749)	10/17/2000 5:05:07 PM
From: John Farrell	Read Replies (1) \| Respond to of 1805

Don, PMCS's OC-48 products are in standard CMOS (silicon), while AMCC's are in more exotic (and expensive) GaAs, or SiGe. PMCS is the first company to be able to reach OC-48 speeds in strictly silicon. Their prices for wafers, testing, and the products themselves are lower because of it, which opens a much larger market of products. As an analogy, using exotic materials and fuels, in Formula One they produce an 3 liter racing engine that produces incredible horsepower ratings. This is useful for a market that will pay for those materials and fuels, but it's not an engine that you'd see in the family grand touring sedan. To carry the analogy further, say Honda/Toyota/GM/Ford produced an aluminum engine, burning the gasoline you can get at the corner gas station that pumps out a similar amount of horsepower within a year or two of the development of that exotic F1 engine, and you have one hell of a family sedan available to the masses. Now, I know it's far from a perfect analogy, but it does give you an idea of the difference in the products at the same speed (2.5Mbps). PMCS products generally have 4-8 year life cycles with significant revenue streams coming on 18-36 months after initial product introduction. PMCS said in the previous CC that they's have OC-192 product in CMOS (probably 0.15u or 0.13u) in 1H of 2001. So, you have to understand the products and markets for them, instead of trying to compare OC-48 to OC-48 on an apples to apples comparison between the companies. -John