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To: RFF who wrote (9277)	1/30/1998 3:40:00 PM
From: shane forbes	Respond to of 25814

RFF I'm not that familiar with ANAD. Have seen it mentioned along with Triquint (sp?) and VTSS as the GaAs guys. This shellacking reminds me of the Triquint disaster a couple of quarters ago. No warning of impending slackening demand and that stock got crushed. Same thing happening today. Of course the wording in the press release really helps: As we enter 1998, however, we are experiencing a substantial reduction in orders and forecasts for orders from our wireless customers, which will result in significantly lower sales in the first quarter and could result in a net loss for the period. This recent information shows a significant reduction in phone build rates on certain products from our customers and suggests that they now have excess inventories of our products. We believe the lower demand is attributable to several factors including, increased competition, a shift in demand to lower costs phones not using ANADIGICS' products, customer delays in the ramp-up of new generation dual-band phones using our new products and, in part, to effects of the Asian financial crisis on the wireless market --- Of course I would bet that a company selling around 33 times earnings would not have been expected to post a loss in the next q! --- Do tend to agree that GaAs is good stuff and this is an overreaction. Something funny is happening in certain areas of the communications sector. See ADCT as well. Then again ANDW is recovering. VLSI is stuck. VTSS though is thriving. A certain segment of WJ's communications area is expected to grow at 50%+ over the next few years. I don't know enough about the nuances in the market segments here to make an educated guess. Reminds me too much of Mr. LSI so many times in the past - if you don't warn you're dead when you do announce and you warn of impending doom, short term though it may be.