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To: Johnny Canuck who wrote (32438)	5/23/2001 12:40:49 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 70309

TriQuint Semi (TQNT) 27.94: Expect this chipmaker to be weak today ahead of its mid-quarter update after the bell today. TQNT's chips are used in wireless, telecom, data communications and aerospace applications. Merrill Lynch is out with a note saying that its channel checks indicate TQNT has experienced push-outs and low bookings over the last four weeks and are coming from most major customers. As such, Merrill expects TQNT to reduce revenue growth expectations for Q2 from $70-$75 mln to $65 mln. The weakness includes the company's OC-192 and other millimeter wave products which comprise 45% of sales....Stepping back, it's important to talk about TQNT's $1.29 bln agreement to by Sawtek (SAWS) in a move to broaden its line of chips for wireless-communications equipment. Sawtek makes tiny filters that clean up signals and reject unwanted frequencies for cell phones and base stations. One of the concerns for TQNT had been that it was falling behind other chipmakers in terms of rolling out a strategy for modules, which is clearly the trend in the cellular business. But with the Sawtek acquisition, TQNT has leapfrogged its competition and now may even be the best positioned component supplier. The goal of the acquisition is to combine the separate components made by each company on a module to sell as one package to equipment makers. We view the Sawtek deal as a positive despite the high priced paid, however, the cellular business is clearly weak right now so this deal will not reap its rewards until the cyclical turn in the space. -- Robert J. Reid, Briefing.com