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

To: Mike who wrote (1941)	7/17/1998 11:08:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 3818

All, I thought everyone on this thread was day trading!! The long term prospects are brighter. Next year's eps is incorrect, the company hasn't really done a budget for next year, but do you really think R&D will stay at 24% of revenues as this company breaks the $200 or $300 million annual revenue run rate? I suspect next year's networking/communications revenues will be up roughly 45% to 75% year over year. Keep in mind that PMCS won't grow with the rate of the market, they'll be growing much faster than the market for the next few years based on expanding their footprint within the infrastructure and the recent acceleration in design wins. I think they'll be able to put up $1.45 to $1.70 in 1999 with a nice acceleration in growth in 2000 over 1999 in both revenues and eps. the comparison gets easier later on because legacy either dies out or becomes a much smaller piece of revenues. TD

To: Mike who wrote (1941)	7/17/1998 11:17:00 AM
From: Bulldozer	Read Replies (2) \| Respond to of 3818

The conference call was VERY positive (or as exciting as Bailey and Sullivan get). 200 more design wins in the quarter and an expanding chip portfolio. The opportunities ahead of them are astounding and they went to great lengths to remind everyone that they are not just an ATM shop. Every major telecom and data networking deal (ATT/TCI, Sprint, LU, US West, Williams, Qwest, Level 3)all will involve PMC chips. They in fact made the statement, that "you cannot cross the internet without touching many of our chips." They are receiving strong feedback on all lines and accordingly stepping up R&D. When customers come to you and say in effect "you're my guy, I need this and this and this, now lets design it and bring it to production" do you say sorry - I have to watch my bottom line for Wall Street? Of course not - we are seeing the seeds that will grow a forest down the line. In the meantime, new products are selling very well (proving that previous R&D does indeed provide increased revs)and despite increased R&D and expected increased hiring, earnings will still be growing! Remember, a good portion (one analyst estimates 50%) of revs come from products 3-4 years old. Imagine what the almost 1000 design wins in the last year will do going forward!! I agree with Youlu, get the weak and mo players out - this thing will be a gorilla in a few years. Todays action means nothing unless your time horizon is indeed 4:00 pm EST today. Bulldozer