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

To: Moonray who wrote (15722)	5/29/1998 12:17:00 PM
From: Scrapps	Respond to of 22053

Cable and ADSL Modem IC Sales to Triple in 1998 Says The Information Network NEW TRIPOLI, Pa.--(BUSINESS WIRE)--May 29, 1998--Shipments of ICs for Cable and ADSL modems will increase from $34.7 million in 1997 to $103.2 million in 1998, according to the report High-Speed Modems: Products, Directions, Markets, recently published by The Information Network, a New Tripoli, PA-based market research company. ''Although the V.90 standard for 56K modems has now been established, growth will be overshadowed by the utilization of cable and ADSL modems for Internet connection,'' notes Dr. Robert N. Castellano, President of The Information Network. ''Nevertheless, 56K analog modems will far outsell digital in 1998.'' In 1998, 26.4 million V.90 modems will be sold in North America, while only 640,000 cable modems and 730,000 ADSL modems will be sold. Shipments of ISDN modems (terminal adapters) will reach 683,000 in 1998, but stall as availability of cable and ASDL modems becomes more widespread. As a comparison, V.90 modems are capable of 56 Kbps (56,000 bits per second) while ADSL modems offer speeds of 6 Mbps (6 million bits per second) upstream and 640 Kbps downstream. Cable modems are also capable of 6 Mbps upstream and 768 Mbps downstream. ISDN has only a 2X speed advantage over V.90. IC manufacturers are keeping pace with changing modem technologies. Companies such as Analog Devices (NYSE:ADI - news), Broadcom (NASDAQ:BRCM - news), Cirrus Logic (NASDAQ:CRUS - news), GlobeSpan, Lucent (NYSE:LU - news), Motorola (NYSE: MOT - news), and Texas Instruments (NYSE:TXN - news) will ship $1.7 billion worth of modem chipsets in 1998. The Information Network is a leading consulting and market research company addressing the semiconductor, computer, and telecommunications industries.

To: Moonray who wrote (15722)	5/29/1998 1:52:00 PM
From: djane	Read Replies (3) \| Respond to of 22053

thestreet.com on Dell'Oro router/RAC stats. [CSCO/ASND growing RAC share at COMS expense.] Cisco Adds to Its Router Market Dominance thestreet.com. By Kevin Petrie Staff Reporter 5/29/98 1:37 PM ET Leading networker Cisco (CSCO:Nasdaq) boosted its share of the router business in the first quarter, according to the latest market data from The Dell'Oro Group. In another market sector, Cisco and rival Ascend (ASND:Nasdaq) stretched further into 3Com's (COMS:Nasdaq) "remote access" business of connecting customers to the Internet. Both markets were smaller than they were in the fourth quarter, however, which might reflect more than the typical seasonal swings. Cisco's stock fell 1 3/16 to 76 1/4 at midday, during an ugly session for the Nasdaq. Ascend was down 3/8 to 42 15/16 and 3Com lost 5/16 to 26 3/4. Bay Networks (BAY:NYSE), another networker and a subject of renewed takeover speculation, traded 1/4 higher at 28 5/8 on heavy volume. Analysts Chris Stix and Vijay Rajamani, with Cowen, published a research note with Dell'Oro's data Friday morning. While Dell'Oro had given clients such as Cowen this data late Thursday, it declined to release any figures to the press until next week. Cowen credited the following numbers to Dell'Oro: Cisco grew its share of the high-end router market (often used by phone carriers or Internet service providers) slightly to 80.4% from 79.9%, and its share of mid-range routers to 65.5% from about 63% in the prior quarter. Bay slipped slightly in each category, to 14.4% and 9.3%, respectively. Cisco claimed 66.6% of the low-end router sales tallied by Dell'Oro, while Bay slipped slightly here to 9.6% from 10.3%. Routers are advanced computers that shuttle data between the networks that make up the Internet. Cisco penetrated another market as well. Its share of the remote access market climbed to 24.1% from about 20.6%. Ascend still leads remote access sales, growing its share to 30.9% from about 27.2% in the prior quarter. Both apparently took business from 3Com, whose share of remote access sales slipped to 28.2% from 34.4%. ISPs use remote-access concentrators to connect multiple subscribers to the Internet. Due to fierce competition, the average selling prices fell 7% from the prior quarter, according to Cowen. Overall first-quarter sales of routers and remote access products did slow some, between 4% and 11%, from the fourth quarter, but Stix says that reflects the "normal seasonal patterns." Phone carriers often pause in their spending early in the calendar year. Dell'Oro's influential data has limited implications. Dell'Oro strictly measures a company's initial sales, often to resellers or distributors rather than to customers. Those transactions don't necessarily equate to final sales to end customers. If products are piling up in the channel, user demand might be lower than Dell'Oro's numbers suggest. But the upshot is that Cisco keeps selling loads of routers, despite mounting competition. Bay Networks is forcing some of that competition. Like other networkers, it is building so-called layer-three switches that do the complex work of routers with cut-rate silicon chips more than with software. Layer-three switches work speedily, which eases capacity strains on the Internet. Dell'Oro says last quarter Bay claimed the largest share of layer-three switches. Cisco's answer to this threat will also help the company's efforts to maintain dominance in the router business: Next month Cisco ships a layer-three model that requires customers to rely on routers for certain tasks. Cowen kept its strong buys on Cisco and Ascend, and buys on Bay and 3Com. The firm has done no underwriting for any of the four networkers. c 1998 TheStreet.com, All Rights Reserved.