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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: Duane L. Olson who wrote (1209)	2/22/1998 3:21:00 PM
From: jbershad	Read Replies (2) \| Respond to of 4710

From major Investment Banker Broker 1. Ciena reduces outlook 2. Ciena short fall may cause concern on VTSS. 3. Any weakness in VTSS an opportunity; we see little fundamental impact VTSS currently principally targets its high speed mux/demux GaAs chips at the Sonet market, and in that sense is like Ciena. Also Ciena is a VTSS customer. (On small but large expanding basis.) Conversations last night with VTSS suggest the company remains on course towards steady 10-12% sequential sales growth. Meanwhile, VTSS is enjoying ongoing strong demand with its telecom customer base with good visability over the next 6 months. The direct impact from Cienna is limited. We do not believe Ciena's Worldcom shortfall reflects any overall demand slowdown for bandwidth. We still see VTSS growth on a 40-50% annual basis. We view our 1-year price target of $55 as conservative. Date of release: Feb., 20, 1998 5yr. projected growth is 30%. estimates for 98 = $1.50 est. for 99 = $2.19 Jerry