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Technology Stocks : Spectrum Signal Processing (SSPI) -- Ignore unavailable to you. Want to Upgrade?

To: Larry Brew who wrote (576)	2/6/1998 1:08:00 PM
From: Juli	Read Replies (1) \| Respond to of 4400

Re IBM loss, I don't remember all of the details, but I believe this was a decision by SSPIF not to continue to pursue that business because it was low margin commodity. They chose instead to focus on higher margin business. So, while revenue is down, margins are increasing. Anyone, correct me if I am wrong.

To: Larry Brew who wrote (576)	2/6/1998 1:59:00 PM
From: Sarah Chapin	Read Replies (1) \| Respond to of 4400

Larry, <<<With sales of $28m, and heavy involvement with the TI c6x chip, I see one of the big guys being interested in them. Especially TI.>> Ecachockey's posting from last month bares repeating. "Spectrum is increasingly focusing on DSP software to add value to their products, but their main business is DSP hardware and complete DSP system solutions. Spectrum is one of many customer's of TI who make OEM products out of TI's DSP's. I believe TI feels very strongly of Spectrum's products, but this does not necessarily mean that it would make good business sense for TI to acquire Spectrum. Acquiring Spectrum would put TI in direct competition with many of their other DSP chip customers. I would not completely rule it out, particularly as Spectrum's software/algorithm/ASIC expertise continues to grow, but am not holding my breath for it either. Other acquisitions like Amati and SSI offered patents/expertise in key future growth areas of DSP, but these are not hardware companies like Spectrum is." Check out the list of TI's 3rd Party Suppliers. Do they really want to put themselves in direct competition with many of these companies, and risk losing chips sales? IMO, Spectrum would have to a much larger company before TI would be willing to risk that. I agree 100% with the quote above. Sarah