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Technology Stocks : CRUS, good buy? -- Ignore unavailable to you. Want to Upgrade?

To: Jazz102 who wrote (5304)	3/13/1998 6:44:00 PM
From: Pierre	Read Replies (1) \| Respond to of 8193

"NEW YORK -(Dow Jones)- Now that most consumers don't need the speediest chips to run their standard computer applications, Intel Corp. has to pull another rabbit out of its hat, Smart Money Magazine's on-line edition reported Friday. Through acquisitions, investments and its own development efforts, Intel plans to subtly broaden the focus of the company and fundamentally change the nature of the microprocessor itself. Instead of just being the ultrafast brains of the PC, Intel wants its next-generation microprocessors to absorb many of the specialized functions now handled by separate chips such as 3-D graphics, signal processing, even networking. And that can only mean that Chief Executiver Officer Andy Grove has to go shopping. Intel has already opened its hefty wallet to fund or buy outright companies that either expand the application of the microprocessor, provide key technology drivers or drive demand for greater chip bandwidth. The investments range from companies such as C/Net (CNWK), to Covad Communications, a competitive local exchange carrier based in Santa Clara, Calif., offering high-speed data networking for business telecommuters, to Chips & Technologies, a maker of graphics chipsets, which Intel picked up for around $400 million earlier this year. So who's next? The answer lies in four key areas - networking and telecommunications; consumer electronics and multimedia PCs; embedded DRAM (that's the technology of putting memory on to nonmemory chips); and what is known as super I/O, a technology necessary to enable the many high-bandwidth applications coming down the pike such as hooking up digital video cameras to PCs. Now, there are many companies in these areas. So Smart Money attempted to narrow the field by applying criteria similar to what Intel might follow as a general approach to acquisitions. Here's a look at the prime candidates, according to Smart Money: - Cirrus Logic (CRUS): The first priority for Intel is to protect its desktop leadership. Part of Intel's drive to sell more PCs has been its push into rich multimedia applications. However, Analyst Drew Peck with Cowen & Co. says that Intel's position with respect to multimedia and other key elements of the PC architecture is precarious. That's because there is so much aside from the microprocessor that is now crucial to the operation of the modern PC. Just think about what your computer would be without sound and 3D graphics. "National Semiconductor owns much of the intellectual property for these key elements of the PC," says Peck. "That's an untenable position for Intel." And one that has to prompt investment in some other areas of PC technology, such as analog circuits, Peck believes. Cirrus Logic is a $700 million company with a nice portfolio for both PC sound- and video-encoding technology. Intel must also prepare for its announced intentions to get into more diverse types of non-PC products, including information appliances, next-generation cable TV set-top boxes and other sorts of consumer electronics devices. (Intel's recent purchase of the StrongARM chip from Advanced RISC Machines, Ltd. shows the company is serious about this whole area.) Cirrus has expertise in the systems-on-a-chip area that could be valuable in this respect. On the other hand, Peck sees a nice acquisition in the Crystal Semiconductor division of Cirrus, but says the rest of the company wouldn't be worth much to Intel. As an alternative, he suggests the company could invest in smaller outfits that also have analog expertise. ..."

To: Jazz102 who wrote (5304)	3/13/1998 6:48:00 PM
From: Pierre	Respond to of 8193

"... Cirrus Logic is a $700 million company with a nice portfolio for both PC sound- and video-encoding technology. Intel must also prepare for its announced intentions to get into more diverse types of non-PC products, including information appliances, next-generation cable TV set-top boxes and other sorts of consumer electronics devices. (Intel's recent purchase of the StrongARM chip from Advanced RISC Machines, Ltd. shows the company is serious about this whole area.) Cirrus has expertise in the systems-on-a-chip area that could be valuable in this respect. On the other hand, Peck sees a nice acquisition in the Crystal Semiconductor division of Cirrus, but says the rest of the company wouldn't be worth much to Intel. As an alternative, he suggests the company could invest in smaller outfits that also have analog expertise. ..."