Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Rockwell-Spins off Conexant (CNXT) -- Ignore unavailable to you. Want to Upgrade?

To: FACTUAL who wrote (1808)	12/8/2000 2:19:19 PM
From: SpecialK	Respond to of 2013

biz.yahoo.com PMCS quarterly report, gross margins of 76.5%. AMCC 73%, TXCC 70% Conexant says 65%. Like how you quickly jump away from margins. The S-1 link is helpful. Let's see. We form strategic relationships with leading network infrastructure OEMs to define and develop new products. In the past we have successfully collaborated with leading OEMs, such as Cisco, Nortel, Lucent and Alcatel, in new product introductions and the definition of long-term product development plans. We believe our strong customer relationships with these established market leaders, as well as emerging market leaders such as Juniper, Redback, Sycamore and Tellium, provide us with a foundation for successfully competing in the design of semiconductor system solutions and products for the next generation of network infrastructure equipment. Re: customer concentration We market and sell our products directly to network infrastructure OEMs and indirectly through electronic components distributors. We also sell to third-party electronic manufacturing service providers who build systems and subsystems for network infrastructure OEMs. We have derived a substantial portion of our revenues in the past from sales to a relatively small number of customers. Sales to OEMs Cisco and Lucent accounted for approximately 15% and 12%, respectively, of our revenues in fiscal 2000. Sales to manufacturing subcontractors Solectron and ACT accounted for approximately 12% and 11%, respectively, of our revenues in fiscal 2000. Sales to distributor Avnet accounted for approximately 17% of our revenues in fiscal 2000. We believe a substantial portion of our products sold to Solectron, ACT and Avnet are in turn sold to leading OEMs, including Cisco and Lucent. We expect a small number of OEM customers will continue to account for a substantial portion of our revenues for fiscal 2001 and in the future. In fiscal 2000, approximately 25% of our total sales were to customers located outside the United States, primarily in European and Asia-Pacific countries. Recent examples of joint development and close working relationships with our key customers include our development with Cisco of dynamic packet transport technology and 10 Gbps very short reach interconnect technology and our development with Alcatel of the industry's leading 3.2 Gbps 68x68 cross-point switch used in emerging optical cross-connect systems. We believe our close relationships with leading network infrastructure OEMs facilitate early adoption of our products during development of their products, enhance our ability to obtain design wins and encourage adoption of our technology by the industry. In November 1999, we announced that we would collaborate with Cisco to define a new low-cost interface for interconnecting co-located gigabit switches and terabit routers, dense wavelength division multiplexing, or DWDM, terminals, and SONET/SDH add-drop multiplexors at 10 Gbps (OC-192) data rates. In August 2000, we and Cisco demonstrated the industry's first 10 Gbps very short reach interconnection at the National Fiber Optics Engineers Conference in Denver, Colorado. We have also been selected as a principal semiconductor supplier in Cisco's dynamic packet transport, or DPT, Partner program and will help to promote the emerging spatial reuse protocol technology as an open industry standard for packet-optimized transport solutions. Customer list 3Com Corporation Efficient Networks, Inc. Nortel Networks Corporation ADC Telecommunications, Inc. Ericsson Inc. Redback Networks Inc. Alcatel Data Networks, S.A. Fujitsu Limited Sonus Networks, Inc. CIENA Corporation JDS Uniphase Corporation Sycamore Networks, Inc. Cisco Systems, Inc. Juniper Networks, Inc. Tellabs, Inc. Copper Mountain Networks, Inc. Lucent Technologies, Tellium, Inc. ECI Telecommunications Inc. Zhone Technologies, Inc. Nokia Corporation </TABLE>

To: FACTUAL who wrote (1808)	12/8/2000 2:23:43 PM
From: SpecialK	Respond to of 2013

Other note from PMC biz.yahoo.com We depend on a limited number of customers for a major portion of our revenues. Through direct, distributor and subcontractor purchases, Cisco Systems and Lucent Technologies each accounted for more than 10% of our fiscal 1999 and year to date 2000 revenues. We do not have long-term volume purchase commitments from any of our major customers. Too bad they don't say exact percentages.

To: FACTUAL who wrote (1808)	12/8/2000 2:25:09 PM
From: SpecialK	Read Replies (1) \| Respond to of 2013

A bit more on AMCC biz.yahoo.com Sales to Nortel Networks, Inc., and its contract manufacturers, accounted for 20% and 27% of net revenues for the three and six months ended September 30, 2000, respectively, as compared to 36% and 33% for the three and six months ended September 30, 1999, respectively. Sales to Insight Electronics, Inc., our domestic distributor, accounted for 18% of net revenues in both the three and six months ended September 30, 2000, compared to 15% for both the three and six months ended September 30, 1999. Sales outside of North America accounted for 15% and 17% of net revenues for the three and six months ended September 30, 2000, respectively, as compared to 21% and 23% for the three and six months ended September 30, 1999. Our customers are concentrated, so the loss of one or more key customers could significantly reduce our revenues and profits. A relatively small number of customers has accounted for a significant portion of our revenues in any particular period. We have no long-term volume purchase commitments from any of our major customers. We anticipate that sales of products to relatively few customers will continue to account for a significant portion of our revenues. If a significant customer overstocked our products, additional orders for our products could be harmed. A reduction, delay or cancellation of orders from one or more significant customers or the loss of one or more key customers could significantly reduce our revenues and profits. We cannot assure you that our current customers will continue to place orders with us, that orders by existing customers will continue at current or historical levels or that we will be able to obtain orders from new customers.

To: FACTUAL who wrote (1808)	12/8/2000 2:35:04 PM
From: SpecialK	Read Replies (1) \| Respond to of 2013

Factual, hint:(modems)? I see Cisco and Lucent are in the business of selling modems, so we should be concerned that 60+% of this business is with Cisco and Lucent, right? 500M in revenue, which you believe is mostly modems? Where do you get this? Go to conexant.com and look at the Personal computing division, this has analog modems. By the way, modems, are such a bad thing that they are allowing you to be on the Internet right now. Probably a Conexant modem in your PC.