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

To: bvinnieb who wrote (970)	11/10/2000 1:04:26 PM
From: SJS	Read Replies (1) \| Respond to of 1805

CSFB on AMCC _________________ Applied Micro Circuits (AMCC-$61.31-Cap $18.9B-Strong Buy) AMCC Announces ALA Design Win FY01E: $0.53; FY02E: $0.76 FYE: March · AMCC announced that Alcatel is using several AMCC products on each of its lines cards for ALA’s new 7770 RCP carrier class core router which ALA intends to deploy in May 2001. This device utilizes multiple line cards that support the full range of deployed SONET line rates from OC-3 to OC-192. · ALA is using AMCC’s Rhine and Indus framers, Ganges mappers, as well as several other AMCC chips that address clock/data recovery and mux/demux tasks. The advertised price for these parts together is roughly $2500. However, we would conservatively assume that ALA would receive typical volume discounts that would bring that number down over the next couple years as the product deploys. We also believe that ALA may not utilize all those chips on every single line card within a system but may “mix and match” them depending on the necessary performance. · We estimate that ALA’s revenues have steadily grown for AMCC over the past year and that it represented just under 10% of AMCC’s sales last quarter. We do believe that that contribution could increase in FY2002 as this product ramps but our model remains unchanged as we believe a conservative ramp for the product has already been factored into management’s guidance. · Should the product take off more aggressively, it could provide upside to our model in FY2002. Maintain Strong Buy.