Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : Technical analysis for shorts & longs -- Ignore unavailable to you. Want to Upgrade?

To: j g cordes who wrote (38719)	1/4/2003 3:04:41 PM
From: xcr600	Read Replies (2) \| Respond to of 69974

lightreading.com ??

To: j g cordes who wrote (38719)	1/6/2003 2:12:45 AM
From: Johnny Canuck	Read Replies (1) \| Respond to of 69974

Embedded market place heating up. ************************************** Transmeta climbs into embedded market By Michael Kanellos Staff Writer, CNET News.com January 5, 2003, 9:00 PM PT Transmeta on Monday will release its first line of chips for cash registers, industrial equipment and other embedded applications in an attempt to diversify its business. The Crusoe SE processors are similar to the company's notebook chips but will be incorporated into a wider variety of nontraditional devices, such as point-of-display terminals or in-car entertainment systems. Embedded chips typically perform a limited number of functions and run only a few software applications, but must be far more resistant to breakdowns and environmental hazards, such as dust, than PC chips. The Transmeta chips fill a niche between products from ARM and MIPS, which are fairly popular in the embedded world, and processors from Intel and AMD, said Tom Lee, director of embedded business development at Transmeta. The Crusoe SE line runs at 667MHz to 933MHz, faster than most ARM chips, but consume less power than competing Intel and AMD chips, thereby eliminating the need for internal cooling fans. "The last thing you want is a fan. Reliability is king in this market," Lee said. "What you want is something that won't break down from grease being sucked into the French fry machine." The chips also can run Windows and Linux software, he noted. After a glamorous start, Transmeta has been trying to recover from a disastrous slide in 2001. The company's Crusoe 5800 chip was delayed several times that year, prompting Toshiba to cancel a Transmeta-based notebook for the U.S. market. Revenue fell to below $2 million a quarter, forcing the company to replace CEOs and lay off employees. Although Transmeta continues to lose money, it managed to get the 5800 out the door in 2002 and is currently working on a new chip, called the Astro, which will debut later this year. Revenue also has risen lately. The embedded market differs substantially from the PC market. Embedded chips typically sell for less than their PC counterparts and companies often need fewer chips. On the plus side, there are far more potential customers, Lee said. Contracts also can run for far longer. Notebook manufacturers refresh their product lines every six months, requiring chipmakers to continually pursue new agreements. By contrast, a cash register manufacturer might sell the same model for several years, effectively guaranteeing a revenue stream to companies that supply its components. To that end, Transmeta says it will promise to sell the same chips for five years, so that manufacturers won't have to worry about redesigning their systems or boards, said Lee. The company will initially make six Crusoe SE chips. The chips will run at 667MHz, 800MHz and 933MHz. At each speed grade there will be a regular and low-power model, Lee said.

To: j g cordes who wrote (38719)	1/6/2003 2:36:27 AM
From: Johnny Canuck	Read Replies (2) \| Respond to of 69974

This explains the strength in telcom equipment stocks in November/December despite the weak forward guidance. ADTN and TLAB have both publically stated that they though regulatory relief was what was required to get the carriers back on track. This in addition to the attempts to raise rates in specific market maybe signalling the carriers are willing to loosen their purse strings again. Considering that many were rumored to be spending below maintenance levels, we may see a re-bound in chip equipment stocks. ADTN pre-announcemnt of better results indicates carriers are investing in newer equipment which has better gross margins for ADTN. In addition it indicates the Baby Bells are spending. It still all centers around T1 line growth. Closer into the core away for where ADTN plays, the RBOC's use a lot of TLAB switches. Given that it has about $1 bill in cash, it could be considered a value play. A little more risky is TXCC which sells chips into the T1 local access space. ADCT also makes the list as they sell to RBOC's and cable companies. **************** Reuters FCC to Drop Key Phone Competition Rule-WSJ Monday January 6, 1:40 am ET NEW YORK (Reuters) - U.S. regulators are preparing to stop making local phone companies rent their networks to rivals at cheap rates, a move that could reduce competition and price-cutting in the local phone market, the Wall Street Journal reported on Monday. ADVERTISEMENT The expected change by the Federal Communications Commission would be a huge win for the four regional Bell companies, which are trying to continue their domination of the profitable local market, the report said. It could be a significant setback for their biggest competitors, the two already beaten-down long-distance giants, AT&T Corp. (NYSE:T - News) and WorldCom Inc. (Other OTC:WCOEQ.PK - News), which have struggled to make inroads into local phone service. The revisions to the rules would be the most drastic change to the nation's telecommunications laws since Congress passed the Telecommunications Act of 1996, which was predicated on allowing the Bells and the long-distance companies to enter each other's markets. The move would essentially undo the FCC's key rules intended to make it easier for new providers of local service, including long-distance companies, to compete with the Bells: Verizon Communications (NYSE:VZ - News), BellSouth Corp. (NYSE:BLS - News), SBC Communications Inc. (NYSE:SBC - News), and Qwest Communications International Inc. (NYSE:Q - News). Instead, the plan would force them to pay higher prices to rent network access or buy more of their own equipment, the article said. The plan, now a draft, could be voted on by the FCC commissioners early next month, the Journal said, citing people familiar with the plan. It would then have to overcome likely legal challenges from the long-distance companies and state regulators, who have been trying to foster competition and win lower rates in local phone service. In its current form, the plan would take two years to be phased in.