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Technology Stocks : COMS & the Ghost of USRX w/ other STUFF -- Ignore unavailable to you. Want to Upgrade?

To: David Lawrence who wrote (14872)	4/17/1998 10:14:00 PM
From: Mang Cheng	Respond to of 22053

"Retailers Sending Modems Back" (04/17/98; 7:30 p.m. ET) By Todd Wasserman, Computer Retail Week Modem makers are mining new lows on prices of 56Kbps modems as they prepare for new V.90 modems, and some retailers are sending non-V.90 modems back as the market shifts to the new standard. NewCom last weekend broke new ground with an after-rebate price of $29.99 on an internal x2-based 56K modem at Circuit City Stores. The original price of the modem was $79.99. Circuit City provided a $20 in-store rebate in addition to NewCom's $30 mail-in rebate. Practical Peripherals, a subsidiary of Hayes, offered its internal, x2-based 56K fax modem at an after-rebate price of $39.99 at Best Buy. The original price was $79.99 with a $40 mail-in rebate from Practical Peripherals. NewCom and Practical are on the vanguard of low 56K modem pricing, but vendors overall are cutting prices and extending rebates as "dual-mode" V.90 modems start appearing alongside the older devices. The low pricing prompted Robert Rabinowitz, vice president of Tech Advanced Computers, Pensacola, Fla., to send back all non-V.90 modems to his distributors. "We get full credit for them," he said, noting the higher margins on V.90 modems. His move anticipates changing customer preferences. Cara Warner, a sales associate for UnI Computers in Lawrence, Kan., said few customers have taken advantage of the low prices on non-V.90 modems. "Most people are holding out for V.90," she said, adding that she expects to stock V.90 devices within a few weeks. Other vendors cutting prices on non-V.90 56K modems include: 3Com, which cut the expected street prices on its x2 modems by about 10 percent in March, according to ARS, Dallas. Its lowest-price x2 modem is the WinModem, which was selling for $99 at Computer City last weekend -- the same price as 3Com's V.90 Winmodem. Diamond Multimedia, which increased its rebate on SupraExpress 33.6K-bps and K56-flex modems from $20 to $40 and extended the program through June 30. Eiger Labs, which is offering a $20 rebate on its 56K PC Card, bringing the price down to $99. BestData, which has extended its $20 rebate on its internal 56K modems to the end of May, bringing the after-rebate expected street price to $79. Ken Chong, BestData's director of marketing, said retailers are anxious to clear out non-V.90 modems. "Buyers don't want to carry double SKUs," Chong said. Jennifer Glickman, an analyst with ARS, said V.90 modems are more attractive to end-users. "I think customers do care [about V.90]," she said. "It presents a bit of difficulty going to a vendor's site and having to download the software." Terry Manning, vice president of sales and marketing for the Boston-based Zoom Telephonics, said the actual difference is minor. "There's a perception of convenience [with V.90 modems]," he said. "It's not like it's a big burden to upgrade, but it's a perception." techweb.com Mang (grab a x2 while you can)

To: David Lawrence who wrote (14872)	4/19/1998 8:45:00 AM
From: Moonray	Respond to of 22053

Broadcom jumps in IPO By Reuters - C\|NET - April 17, 1998, 2:45 p.m. PT update NEW YORK--Shares of computer chipmaker Broadcom Corporation (BRCM) surged more than 123 percent in trading today after the company went public on the Nasdaq. Shares were up 29-5/8 to close at 53-5/8. They touched as high as 70 earlier in the day. Broadcom makes chips that help bring Internet access to television screens through cable lines. The Internet connection, analysts said, made the deal super-sexy and boosted demand to frenetic levels. "We knew the stock would do well and recommended it as a short-term buy," said Robert Natale, new issues analyst at Standard & Poor's. "But this is a buying frenzy--it's incredible. It's a sign of rampant speculation in the whole market," he said. The 3.5 million shares offered sold for $24 each to investors who could get in at the IPO price. Of the total number of shares sold, the company sold 2.75 million, raising $66 million. Company shareholders sold 750,000 shares. The deal raised more than double the company's hopes. When it first filed to go public, it estimated shares would sell for between $10 and $12 each. "There's obviously an unsatiated demand for anything tech-related," said Ryan Jacob, director of research at IPO Value Monitor. The West Coast start-up firm was profitable from its inception through 1996. But last year, it lost $1.17 million or about $0.04 per share as revenues exploded to nearly $37 million. The company has about 43.2 million shares outstanding. Natale said Standard & Poor's is estimating 1998 revenues of $100 million and earnings of $0.08 per share. In 1999, they estimate earnings of $0.42 per share. "This stock is trading at 145 times our estimate of next year's earnings. It's outrageous," Natale said. Broadcom has exclusive relationships with some big-name makers of cable modems and television set-top boxes. Some customers that are already shipping Broadcom products include 3Com, Bay Networks, and Cisco Systems. Cisco is investing in Broadcom in the offering, buying a separate 500,000 shares for $24, the company said in its prospectus. o~~~ O