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To: marginmike who wrote (11384)	6/11/1998 11:08:00 AM
From: Gregg Powers	Read Replies (2) \| Respond to of 152472

Mike: Let's not get into a pissing match here, but Sawtek's press release specifically said "lowered forecasts for CDMA filters for both base station and handset filters". Earlier in the press release, Sawtek had identified the CDMA handset filter segment as "an emerging market", so one can presume from this comment that CDMA handsets have been/are being built either without this type of filter or with filters provided by other vendors and that the infrastructure business is of greater relevance to the Sawtek shortfall. The 10K clearly lists ERICY, LU, MOT and Qualcomm in that order of precedence. So, if MOT were an "emerging" customer for CDMA handset filters that went away, would this equate to a reduced forecast. Yes or No? Again, reading the press release carefully and literally, SAWS cited infrastructure first and handsets second. So, I presume that infrastructure is the more meaningful delta. Changing market share between MOT, Nortel, Lucent and Qualcomm could be the cause. A slowdown in North American infrastructure spending, as the PCS builtout slows down, could also be a cause. And, as I pointed out before, its also always possible that SAWS customers have simply reallocated orders to another vendor or second sourced. You are correct that the stock is down due to the Sawtek news. Eric Zimitz (at H&Q) has extrapolated the SAWS press release to suggest something systemic. Nothing that I have heard from Qualcomm or Lucent corroborates his position, but I cannot speak for Nortel or Motorola. My earlier comment stands. Figuring in double-counting on the Nasdaw, people have traded over $17mm worth of QC based on an out-of-context sound-bite. The devil is always in the details, but I wonder if ANY of the people reacting to the Sawtek press release can even explain what the component does in a CDMA handset or base station, not to mention the number of alternative techniques or suppliers. Oh well. Gregg