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Technology Stocks : PMC-Sierra (PMCS) -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (1813)	6/14/1998 12:48:00 PM
From: Estephen	Respond to of 3818

It may be even more than 50%. It looks like ATM could be in a boom time. It seems the network OEM'S have awakened in mass to the fact that ATM is it. It took a year longer than I thought it would. Cisco, Lucent and Fore were first and had the right product when it was needed. Acsend was out playing in the sand box with frame relay and suffered badly for it. Same story with Bay and cabletron or whatever networker with their stock in toilet, no ATM product. Now those companies are concentrating on ATM products. So not only is the network industry experiencing the fastest growth rate in the market but, also, withing the industry, Atm is sweeping through. My opinion. Good time to be holding Pmcs.

To: Trader Dave who wrote (1813)	6/16/1998 11:47:00 AM
From: Billy Joe	Read Replies (1) \| Respond to of 3818

IF* ATM chip market in 1998 is $199M... AND PMCS has 70% of ATM chip market... THEN 1998 PMCS revenue may look like (strictly back of envelope): $140M - Networking: ATM Related $65M - Networking: Non-ATM related $20M - User Interface -------------------------------------- $225M Total (1998) vs. $127.2M (1997) I extrapolated from 1Q98 results to the above. ~75% growth rate (year-year) Presumes: 1 - Networking:ATM is 40% of total Networking Revenue. 2 - $199M ATM chip market is fully addressed by PMCS (all aspects) and 70% PMCS market share is overall (Big stretch!?) 3 - Networking:Non-ATM revenue is flat qtr-qtr based on assumption #1. 4 - User Interface revenue will deteriorate slowly through the year (big presumption! $6M in 1Q, $20M yr!?) Now if we take the above back of the envelope estimate and revise the $199M market estimate upwards...