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To: Clint E. who wrote (34067)	9/6/2001 9:08:49 AM
From: Clint E.	Respond to of 69824

Applied Micro eyes modest rebound=== Qualcomm thinks key for 3G-CDMA will be applications ((((( Nothing to get too excited about but something to grab onto when stocks get oversold )))) NEW YORK (CBS.MW) -- Applied Micro Circuits Chief Financial Officer William Bendush said the company expects a "modest rebound" in optical spending next year, with demand for metropolitan networking products leading the charge. Bendush said there has been no change in the outlook for the San Diego-based maker of silicon circuit products for telecommunications since its comments during a conference call following the release of its first-quarter results in mid-July. Analysts polled by Thomson Financial/First Call are currently expecting the company to post a loss of 5 cents a share in the September quarter. The stock (AMCC: news, chart, profile) recently changed hands at $13.50, down 50 cents, or 3.6 percent. During a morning presentation at the Salomon Smith Barney Tech2001 conference, Bendush also reiterated a long-term company gross-margin goal of 70 to 75 percent, saying that pricing is less of an issue for Applied Micro Circuits in this area than is capacity underutilization, which causes fixed manufacturing costs to erode the bottom line. Bendush also said Applied Micro Circuits is putting a strong emphasis on C-MOS, or complementary metal-oxide semiconductor products. "Our strategy is to do everything we possibly can in C-MOS," he said. "Roughly 85 percent of our spending on research and development is there." Qualcomm: Talking about generations In a later presentation Wednesday, Qualcomm President Paul Jacobs commented on the evolution of CDMA (or code-division-multiple-access) wireless communications technology, saying that applications will drive interest in 3G. "There's a lot of hype right now about [second- and third-generation] CDMA," he said. "You will hear a lot of noise from 2G people, but in the end the difference will be the services that 3G can support at a cheaper cost and greater speed." Jacobs also updated attendees on the progress of CDMA in China, saying that, since deployment is moving along, marketing will become important. He also called India a "potential big opportunity." Asked about the revenue potential of the company's BREW (binary-runtime-environment for wireless) software platform, which runs on top of its handset system software, Jacobs explained that Qualcomm currently licenses the product free of charge because it wants BREW to be as broadly deployed as possible. The company expects eventually to make money on the technology through revenue-sharing arrangements based on applications developed to run on top of the platform. Shares of Qualcomm (QCOM: news, chart, profile) dipped 77 cents, or 1.3 percent, to $53.53, in afternoon action.