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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: lurqer who wrote (39522)	2/20/2001 12:37:11 PM
From: Stoctrash	Respond to of 54805

hahahahah...never heard that version before. Lehman just started BRCM the other day with lower numbers...now they just cut them again. DONT BLAME ME... ======= Semiconductors & Communications A. Chanda, .415.274.5370 It’s a long way from home •We believe that with the persistent inventory correction and demand slowdowns in the communications markets we are likely to see earnings downward revisions from the major communications component vendors. We believe that excluding PMC-Sierra, we could still see significant downward revisions from these companies. •We believe that the operating environment of all the communications component vendors have become significantly worse over the months of January and February. Specifically, we believe that forward visibility is extremely poor as order cancellations and push outs make it extremely difficult to predict the final outcome of the March quarter, let alone June quarter. We are therefore reducing our estimates for JDS Uniphase, AMCC, Broadcom and PMC-Sierra. Applied Micro Circuits(AMCC) 3 - Market Perform A. Chanda, .415.274.5370 Reducing estimates based on optical slowdown (C) OLD NEW STREET P/E Price: $43.81 EPS 2000 N/A $0.20 N/A N/A 52 Wk Ra: $110 - 33 EPS 2001 $0.57E $0.56E $0.57E 78.2 Mkt Cap: $13.4B EPS 2002 $0.80E $0.67E $0.79E 65.4 FY: 3/31 Price Target $50 N/A Rank 3 3 •We are reducing our estimates based on poor and deteriorating near-term visibility. We are reducing C01 revenues from $828 million to $674 million and EPS from $0.75 to $0.64. •We believe that AMCC’s explosive growth in C00 was driven by OC-192 module deployment into the optical long-haul market. While the optical market continues to grow faster than the overall equipment market, we believe that OC-192 growth may stall causing suppliers like AMCC to see significant slowing of growth. Broadcom Corp(BRCM) 3 - Market Perform A. Chanda, .415.274.5370 Reducing estimates (C) OLD NEW STREET P/E Price: $74.13 EPS 2000 N/A $1.04 N/A N/A 52 Wk Ra: $275 - 71 EPS 2001 $1.53E $1.25E $1.40E 59.3 Mkt Cap: $20.3B EPS 2002 N/A N/A $1.94E N/A FY: 12/31 Price Target $120 N/A Rank 3 3 •We believe that near-term visibility for Broadcom is limited and we are reducing our C01 revenue estimates from $2.26 billion (up 100% y/y) to $1.85 billion (up 64% y/y) and EPS from $1.53 to $1.25. •We believe that there are multiple issues plaguing Broadcom: (a) inventory correction at Cisco and Motorola (b) cable modem growth slowing (c) losing Gigabit leadership to Marvell (d) slowing server market impacing ServerWorks. We also believe that given about 40% of revenues are from the enterprise, pricing pressure could affect Broadcom given the impending Gigabit transition as Fast Ethernet experiences more weakness.