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

To: Don Miller who wrote (1425)	3/23/2001 1:59:40 AM
From: John F.	Respond to of 1805

Details re Robertson Stephens 3/22/01 Downgrade of AMCC .. Applied Micro Circuits Corporation NASDAQ: AMCC $19.06 Downgrading to Long-Term Attractive from Strong Buy F2002E EPS: $0.36, down from $0.38 Arun Veerappan, Communications Components/Semiconductor Devices “We are lowering our estimates and rating for AMCC today based on the following: On the demand front, it appears that March has proven to be another tough month for communications components companies, following what was clearly a weak February,” said Veerappan. “Our travels to the Optical Fiber Conference confirmed this belief; most communications components companies indicated that their customers continue to be silent in their ordering to the extent that some of the past weeks have seen no net bookings. On the inventory front, it appears that the weak demand environment has compounded the high degree of excess inventory that exists in the marketplace today. In addition to the OEMs, it is clear from the results of Solectron (SLR $18.92) that the EMS sector is also flush with inventory. We now believe that it could take well over 2 quarters for this excess inventory situation to fix itself such that the EMS players and the OEMs can begin reordering product again. Given the above two factors, we believe that the weakness experienced in the March quarter for communications components companies could continue into the June quarter and consequently expect that estimates for the June quarter and the year need to be revised downwards. We are also using this opportunity to reset our rating on the communications components space to Long-Term Attractive to more accurately reflect the current weak economic environment. We remain cognizant that we are closer to the bottom than we are to the top, but are nevertheless effecting this change in order to utilize the rating system more effectively when we are able see a catalyst that could indicate stabilization for the space.” investor.cnet.com

To: Don Miller who wrote (1425)	3/23/2001 2:42:10 PM
From: The Reaper	Read Replies (1) \| Respond to of 1805

DM, I agree that deregulation is a CA thing....for now. However, had this crisis not materialized here during the last six months and wakened everyone up to the fact that electricity/energy is not a god given right, an even more severe country-wide power shortage may have occurred shoving an even worse recession down our throats. Think of my state as a test case for businesses to cope with an energy shock the magnitude of which has never been felt before. It very nearly put us and others my size out of business. Even though it's a California problem, help from the Feds would be appreciated and I think since we're still part of the Union the last time I checked, the Feds should help somehow as we were the guinea pigs and the entire country could sit back and watch what happened. I know of other state governor's have already pushed back their plans to deregulate based on our troubles here. Maybe we should bill the other state's for consulting fees? kirby