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To: Glenn D. Rudolph who wrote (111301)	10/28/2000 11:09:09 AM
From: H James Morris	Read Replies (2) \| Respond to of 164684

Got me too, and bunch of other rats who follow the pied piper.;-) >NEW YORK, Oct 26 (Reuters) - Shares in Virata Corp <VRTA.O> fell 49 percent on Thursday after the telecommunications equipment maker told analysts it faced slowing sales to a major customer. Virata was down $16 at $16-7/8 in heavy afternoon trading on the Nasdaq market. The stock was the Nasdaq's biggest loser in percentage terms and was off a 12-month high of $111. Virata executives told analysts in a conference call on Wednesday night that it "would have trouble at one of its larger customers," said Alex Gauna, a Banc of America analyst. Although Virata did not name the company, Gauna and Cody Acree, an analyst with Frost Securities in Dallas, said the likely client was Westell Technologies Inc <WSTL.O> . The Aurora, Ill., maker of high-speed digital subscriber line modems lowered its outlook through fiscal 2002 last week. Gauna said the slower outlook from Westell had been factored into the Virata stock for several weeks. However, investors were concerned that Virata had forecast strong fiscal second-quarter growth in mid-September even as likely problems from Westell persisted. "Part of the reaction today is fear about the inventory at Westell and part of the reaction is ... the upside (September) announcement that led the Street to expect more," he said. Gauna added, "The real discouraging part of the conference call is that Westell remains such a big customer," with more than 30 percent of sales. Virata reported adjusted net income of $8.5 million, or 13 cents an adjusted diluted share, compared with a $4.1 million adjusted net loss for the same quarter one year ago, or a loss of $0.15 per adjusted basic and diluted share. Analysts had expected earnings of 10 cents a share, according to research firm First Call/Thomson Financial. Revenues for the second quarter of fiscal 2001 were $42.2 million, up from $3 million last year. Executives also forecast $46.5 million in revenues for the fiscal third quarter. A Virata spokesman was not immediately available for comment. 18:36 10-26-00