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To: Johnny Canuck who wrote (36959)	5/7/2002 9:06:03 AM
From: xcr600	Read Replies (1) \| Respond to of 69344

06:46 ET ESS Tech responds to CFRA report; announces buyback (ESST) 12.99: Co's board of directors authorizes the repurchase of up to 3 mln common shares. "Separately, we are aware of a report recently issued by the Center for Financial Research and Analysis, Inc. (CFRA) which is extremely misleading. The report implies that ESS may be hiding expenses to inflate its operating profits by having its former subsidiary, Vialta, Inc., pay for these expenses. This is absolutely false."

To: Johnny Canuck who wrote (36959)	5/7/2002 11:46:21 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69344

Tuesday May 7, 11:30 am Eastern Time Broadcom Shares Slide as Motorola Inks Deal With Texas Instruments By: Donna Fuscaldo Dow Jones Newswires NEW YORK -- Shares of communications-chip maker Broadcom Corp. (NasdaqNM: BRCM - news) (BRCM) fell Tuesday as investors reacted negatively to news that one of its customers -- Motorola Inc. (MOT) -- signed a deal with Broadcom competitor Texas Instruments (NYSE: TXN - newADVERTISEMENT s) Inc. (TXN). Earlier Tuesday, Motorola announced it had selected Texas Instruments to power its newest cable-modem product. Motorola is seen as an industry leader in cable modems and is one of Broadcom's largest customers in that segment of its business. Quinn Bolton, an analyst at CIBC World Markets, said Motorola's deal with Texas Instruments is "worrisome," considering that if all of Broadcom's Motorola business were to go to Texas Instruments , it would have an impact on 8% to 9% of Broadcom's revenue. The analyst noted, however, that it's hard to imagine Broadcom would lose all of Motorola's business. He said the more likely scenario is that Motorola is using Texas Instruments as a second source of cable-modem silicon. In late-morning trading on the Nasdaq Stock Market, Broadcom shares were down $4.52, or 15%, at $25.42. A Broadcom spokesman said the company continues to be the primary supplier of cable chips to Motorola. "Today's TI announcement does not impact our supply agreement with Motorola," said the spokesman, adding that Motorola is simply tapping a second backup source. Cody Acree, an analyst at Frost Securities, said it isn't surprising that Motorola would ink a deal with Texas Instruments , since TI has been pushing into the cable modem market "pretty heavily" over the last 12 months. Still, he said, Texas Instrument's win comes directly at the expense of Broadcom. According to the analyst, the selloff in Broadcom's stock appears to be overdone, given the fact that cable modems represent only 25% of Broadcom's total business and Motorola is only a portion of that. The analyst noted, however, that in the current environment Broadcom "needs everything working." While the decline in shares of Broadcom can be attributed to the Motorola/ Texas Instruments deal, a 10% selloff in shares of PMC-Sierra Inc. (PMCS) and a 6% drop in Applied Micro Circuits (NasdaqNM: AMCC - news) Inc.'s (AMCC) stock weren't related to Broadcom, analysts said. Sandy Harrison, an analyst at Banc Of America Securities, said Tuesday's selloff in PMC and AMCC has to do with concerns over what networking giant Cisco Systems Inc. (CSCO) has to say when it reports earnings after the close of trading Tuesday. According to the analyst, the stocks are acting as if Cisco's results and outlook won't be good. But if Cisco has positive news, he said communication chip stocks can have a "meaningful" move higher. -Donna Fuscaldo, Dow Jones Newswires; 201-938-5253; donna.fuscaldo@ dowjones.com