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To: Lost1 who wrote (776)	5/2/2002 12:20:43 PM
From: Lost1	Respond to of 3287

Shares in Cirrus Logic Rise Sharply LOS ANGELES (Reuters) - Shares in Cirrus Logic Inc (NasdaqNM:CRUS - news) rose sharply on Thursday after the company posted a loss in line with estimates and confirmed suspicions that revenue would be down this quarter and next from the chips it makes for Microsoft Corp.'s (NasdaqNM:MSFT - news) Xbox video game console. Shares in Austin-based Cirrus, which reported its fiscal fourth-quarter results on Wednesday, were up 11.9 percent at $12.75 in morning trade on Nasdaq. Cirrus makes an optical controller for DVD systems that it sells to Thomson Multimedia, which builds the DVD systems and sells them to Flextronics International Ltd. (NasdaqNM:FLEX - news), which manufactures the Xbox. The company said on Wednesday revenue from Xbox controllers would be down in the June quarter from the March quarter, and down in the September quarter from the June quarter. "With Xbox sell-through down and much lower than expected, there's been a buildup of inventory," said Brian Alger, an analyst at Pacific Growth Equities who upgraded the stock to "Market Perform" from "Neutral" on the prospect of a return to profitability. Alger said he believed a fear about Xbox revenues declining has been overhanging the stock for the last two weeks, and the company's confirmation of the revenue decline was enough to lift the stock. On April 18 Microsoft said it would miss its fiscal-year sales targets for the console by as much as 40 percent because of weak initial sales in Europe and Japan. That news had little effect on video game publishers, but weighed on the shares of companies like Cirrus that provide components for the console. SoundView Technology Group also made note of the shortfall, saying it was reducing its unit estimate for Xbox componentry from Cirrus by 500,000 units for the calendar year.