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To: Dealer who wrote (8227)	10/16/2000 7:03:34 PM
From: Dealer	Respond to of 65232

SSTI--Emerald Research Raises Silicon Storage Ratings, Outlook Monday, October 16, 2000 06:07 PM PHILADELPHIA -(Dow Jones)- Emerald Research upgraded its short- and long-term ratings on Silicon Storage Technology Inc. (SSTI, news, msgs) to "strong buy" from "buy" Monday and raised its 2000 and 2001 earnings estimates, citing upside third-quarter results. The Lancaster, Pa., investment firm also raised its 12-month price target on Silicon Storage to $50 a share from $45. Shares of the Sunnyvale, Calif., maker of nonvolatile memory products closed Monday at $21.56, down 88 cents, or 3.9%, on volume of 4.9 million, compared with average daily volume of 6.6 million shares. Silicon Storage reported third-quarter earnings of 37 cents a share on $163.7 million in revenues last week, beating Emerald's expectations of 25 cents EPS on revenues of $128.6 million. A consensus of analyst estimates also had forecast 25 cents a share before the company pre-announced earnings. In the third quarter of 1999, Silicon Storage posted earnings of a penny a share on revenue of $35.1 million. Emerald raised its fiscal 2000 revenue prediction to $528.1 million from $459.8 million and its earnings forecast to $1.23 a share from 93 cents a share. For fiscal 2001, the firm is raising its revenue estimate for Silicon Storage to $1.19 billion from $996.6 million, and its earnings outlook to $2.90 a share from $1.83 a share. Emerald cited a strong demand for SST's products and the company's continuing expansion of its manufacturing capacity, which has exceeded the analyst's expectations. SST has beaten Emerald's revenue and earnings estimates for five consecutive quarters. The firm expects SST to continue to gain market share in the code storage application of flash memory products. It expects the company to make some small acquisitions to maximize manufacturing growth and further diversify its target markets. "We believe the company will continue to grow revenues and earnings much faster than its peers, and the semiconductor industry as a whole," an Emerald research note said. SST's products are used in the networking, digital-consumer, wireless communications and Internet computing markets. -By Dinah Wisenberg Brin, Dow Jones Newswires, 215-656-8285; dinah.brin@dowjones.com (This story was originally published by Dow Jones Newswires)