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Technology Stocks : PMC-Sierra (PMCS) - moderated -- Ignore unavailable to you. Want to Upgrade?

To: DukeCrow who wrote (42)	10/13/2000 1:06:06 PM
From: SJS	Respond to of 469

PMC-Sierra (PMCS-$158.44-Cap $29.1B-Strong Buy) You Can’t Keep a Good Company Down; PMCS Posts 32% Q/Q Revenue Growth EPS: CY00E: $1.01; CY01E: $1.70 (old: $0.95/$1.42), Rev ($M): CY00E: $691; CY01E: $1,207 (old: $570/915) · PMCS blew out another quarter, reporting $0.31 on a pro forma basis for 1Q00. Organic (ex-acquisitions) EPS would have been even higher at $0.33 (vs. consensus of $0.26). Revenue grew 32% sequentially to $198 MM--and even organic growth of 30% beat our previewed expectations of 25-28%. · The acquisitions for QED, Malleable, and Datum closed in 3Q00, while SwitchOn closed a week into 4Q00. The effects from all of these transactions are in our revised model, including revised 3Q00 figures. · Demand continues to be strong, and even with spot constraints, PMCS repeated the same guidance as the last two quarters for at least 15% sequential growth. · We reiterate our Strong Buy. We have raised estimates as noted above. Price target remains $300, given stock weakness.

To: DukeCrow who wrote (42)	10/13/2000 2:45:09 PM
From: John Farrell	Read Replies (1) \| Respond to of 469

Ali, It's more complicated than that as they closed the acquisitions of three companies, the privately held Malleable Technologies and Datum Telegraphic, and the publically traded Quantum Effect Devices, all in Q3 and the inventory numbers of those companies were NOT included in the Q2 numbers you're referring to. Receivables went from $64.6 million to $98.0 million and QED's revenues were up 48% sequentially, so it was grew revenues, inventory and A/R faster than the rest of PMC-Sierra, which should completely explain your questions. -John