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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: SemiBull who wrote (11491)	5/19/2003 9:17:36 PM
From: SemiBull	Read Replies (1) \| Respond to of 11555

IDT leads bright CAM market in Q1 '03, says report By Mark LaPedus , Semiconductor Business News May 19, 2003 (12:34 PM) URL: siliconstrategies.com EL SEGUNDO, Calif. - After a period of little or no growth, the network search engine (NSE) chip market rose 23.9 percent in the first quarter of 2003, compared to the like period a year ago, according to a report from iSuppli Corp. today (May 19). But analysts from the El Segundo-based research firm believe the sudden jump in NSEs will be a temporary trend. At the same time, Integrated Device Technology Inc. (IDT) was the leading NSE chip maker in the first quarter of 2003 in terms of sales, according to the report. NSE products include content-addressable memories (CAMs) and related products. For years, CAMs have been used as search engines for routers, switches, and related systems. CAMs are fast, but they are also more expensive than DRAM- and SRAM-based search engines. CAMs are also proprietary products that are basically embraced by only one company: Cisco Systems Inc., the report said. And there are no second-sourced parts among vendors. As a result, the CAM market is a small, niche business. In total, the NSE market hit $72 million in terms of sales last year, according to iSuppli. In the first quarter of 2003, the total NSE market hit $17.4 million in sales, up 23.9 percent year-over-year and 15.3 percent sequentially. But sudden the jump is only temporary, due to the ongoing slump in the communications business, said Betsy Van Hees, an analyst with iSuppli, in the report. “Thanks to a small uptick in the replacement cycle of older equipment, the NSE market experienced quarterly growth,” Van Hees said. But NSEs faces a tough year, as “iSuppli forcasts another muted year for telecom and networking equipment in 2003,” she said. In terms of market share, IDT was the leader in Q1 of 2003. IDT's NSE chip sales were $8.7 million in the first quarter of this year, up 24.3 percent over the fourth quarter of 2002 and 35.9 percent year-over-year, according to the report. IDT's NSE market share was 50.1 percent in the first quarter of 2003, followed by Cypress (25.3 percent), Music (7 percent), Sibercore (6.7 percent), Kawasaki (6.2 percent), NetLogic (2.2 percent), Micron (1.6 percent) and Virage (0.9 percent), according to the report.