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

To: ricky who wrote (1975)	7/21/1998 8:34:00 AM
From: Trader Dave	Read Replies (1) \| Respond to of 3818

There's one thing fairly important missing from the thread discussion. PMCS doesn't sell commodity components anymore. PMCS is really a semiconductor software company. Their customers design their systems around PMCS components. Those design wins last for the lifetime of the product. Can you point out one place in the high end of PMCS business where the company is losing share? I'm searching for evidence of your comment that <<Competition is here today unlike a few years ago when Sierra Semi dominated this business.>> I see no evidence of this at all. The R&D increase is not due to competitive pressures, it's because the company is expanding its footprint beyond the physical layer to the switch layer (perhaps next to the network layer) and then perhaps to an integrated platform. Although the company is driving a significant acceleration in future growth with its recent increase in design wins, its customers are asking for a broader and deeper product line since the engineers at the client customers want to design around pmcs chipsets. "Nope I'm sorry, we're not gonna design new products for you right now, the momentum investors in our stock only care about the short term. " Give me a break! I wish people would realize that despite the estimate cuts, pmcs' fundamentals are improving! TD