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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: StanX Long who wrote (61298)	3/3/2002 10:34:42 PM
From: StanX Long	Read Replies (1) \| Respond to of 70976

TI warns worst is not over for telecoms hardware By Paul Abrahams in San Francisco Published: March 3 2002 20:57 \| Last Updated: March 3 2002 21:58 news.ft.com Texas Instruments, the semiconductor group, is warning that the worst may not be over for its customers in the telephone equipment market such as Lucent, Nortel and Cisco Systems. "Wireline infrastructure demand continues to be quite weak. Of all the sectors we supply, this will be the last to pick up," said William Aylesworth, chief financial officer at TI. "Companies such as Lucent, Nortel and Cisco were most severely hit by the downturn. Demand for our premium analogue products in wireless base stations and wireline infrastructure have not hit bottom. They were down sequentially by about 15 per cent in the fourth quarter and will be down again slightly this quarter," he said. Mr Aylesworth's comments follow a series of analysts' downgrades last week for Cisco. On Wednesday, Wachovia Securities cut its earnings forecasts for the company, warning that investors had been too optimistic about a recovery in information technology capital spending. It said Cisco's revenues in the current quarter could fall sequentially by as much as 5 per cent. The comment caused Cisco's shares to fall 8 per cent to $14.24 at the close on Wednesday, although by the end of the week they had recovered to $15.