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

To: FR1 who wrote (1630)	10/15/2001 11:03:29 AM
From: techanalyst1	Read Replies (1) \| Respond to of 1805

Yes, they were screaming for rates to be lowered. That should kind of say that their customers had to borrow or service debt in order to buy more. In the past, that's how they bought more from their suppliers. But they were also losing more money than they were making. That cannot continue forever. Too many companies came public and those customers bought from csco, etc. The dead cease to buy. Csco inventories were rising quarter over quarter for a while. They were accepting more product than they were able to sell. If interest rate increases alone were responsible, interest rate cuts would solve the problem and they haven't. If amcc's products are obsolete so quickly, do you really think that companies will want to order more than they need for their immediate future? Don't get me wrong. I like Amcc ALOT. I just think that it is expensive and growth isn't necessarily going to return to it's previous growth rate in a sustainable manner. I can only say that a month before the quarter end, guidance was for flat revenues from last quarter with moderate growth after March 2002 and it came from David Rickey himself. Maybe things have gone gang busters since then. I don't think that it's over for this sector. The strong will get stronger and the weak will die. Amcc is one of the strong companies and their cash is going to see them through any downturns as long as they aren't too long. I'd like to know about new design wins and whether they are losing any market share to other IC semis. TA