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Technology Stocks : Faroudja FDJA -- Ignore unavailable to you. Want to Upgrade?

To: John Nasser who wrote (12)	11/25/1997 11:28:00 AM
From: John Nasser	Read Replies (1) \| Respond to of 249

FDJA-- GETS "BUY" RATING!!!! BancAmerica Robertson Stephens Initiates Coverage of Faroudja Labs With a Buy Rating SAN FRANCISCO, Nov. 25 /PRNewswire/ -- BancAmerica Robertson Stephens research analyst John Rossi initiated coverage today on Faroudja Labs (Nasdaq: FDJA - news) with a Buy rating. Faroudja is a leading producer of video image enhancement products for the broadcast and premium home-theater markets. Faroudja designs, manufactures, and markets a family of products with one simple, shared purpose: to make video images better. In its 25 years of existence, the company has put together an impressive technology portfolio and has built a premium brand name in the video marketplace. Within the TV industry, the company is widely regarded as one of the most advanced practitioners of video processing. ''We consider the Faroudja brand to be the Ferrari of its market,'' said Rossi. PC convergence is presenting the company with a huge new market opportunity. The coming together of the entertainment and information industries could turn the personal computer into a multipurpose platform, which presents the company with a potentially enormous market opportunity. ''We believe emerging markets will likely fuel the lion's share of Faroudja's projected sales and earnings growth over the next several years, as the company moves to capitalize on opportunities presented by the convergence of the personal computer and the television, and by the emergence of digital TV broadcasting,'' said Rossi. Faroudja is already benefiting from the PC convergence market: in the first half of F1997, revenue grew 41% and gross profit grew 58% as the company reaped its first contributions of royalty revenue. The EPS estimates for 1997 and 1998 are $0.14 and $0.35, respectively. In 1999, a year when Rossi expects HDTV and royalties from PC convergence to contribute 38% of sales, his estimate is $0.56. BancAmerica Robertson Stephens is a leading international investment banking firm focused on emerging growth companies. The firm's 45 senior research analysts cover over 500 companies. The information contained herein is not a complete analysis of every material fact respecting any company, industry or security. Although opinions and estimates expressed herein reflect the current judgment of the Firm, the information upon which such opinions and estimates are based is not necessarily updated on a regular basis; when they are, the date of the change in estimate will be noted. In addition, opinions and estimates are subject to change without notice. This Report contains forward-looking statements, which involve risks and uncertainties. The Company's actual results may differ significantly from the results described in the forward-looking statements. Factors that might cause such a difference include, but are not limited to, those discussed in ''Investment Risks.'' BancAmerica Robertson Stephens from time to time performs corporate finance services for some companies described herein and may occasionally possess material, nonpublic information regarding such companies. This information is not used in the preparation of the opinions and estimates herein. Facts and other information discussed have been obtained from sources considered reliable but are not guaranteed. BancAmerica Robertson Stephens, its managing directors, its affiliates, and/or its employees may have an interest in the securities of the issue(s) described and may make purchases or sales while this report is in circulation. BA Robertson Stephens International Limited is regulated by the Securities and Futures Authority in the United Kingdom. This publication is not meant for private customers. The securities discussed herein are not FDIC insured, are not deposits or other obligations or guarantees of Bank of America NTSA, and are subject to investment risk, including possible loss of any principal amount invested.