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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Craig Freeman who wrote (28454)	7/22/1998 1:46:00 PM
From: FJB	Read Replies (2) \| Respond to of 33344

Dow Jones Newswires NEW YORK -- Aavid Thermal Technologies Inc.'s (AATT) stock is down 50% on news of decreased demand from Intel Corp. (INTC), although Aavid expects its third quarter earnings to match its year-ago figure of 25 cents a share. Intel was Aavid's largest customer during the second quarter, accounting for net sales of about $15 million or about 28% of Aavid's total net sales of $54.3 million. Sales to Intel will be "down but not gone" in terms of value and revenue during the third quarter, a company spokesman told Dow Jones. Aavid's announcement late Tuesday of second-quarter net income of 34 cents a diluted share, up from 23 cents a year ago, included a warning that it expected an "interruption to our long-term growth trend" during the third and fourth quarters. The company's earnings met analysts' expectations. On Wednesday, investors focused on the bad news, as Aavid fell 15 5/8, or 52.1%, and recently traded at 14 1/4, with 2.4 million shares having traded hands on the Nasdaq. Average daily volume is 146,800 shares. "We were surprised at literally the 11th hour" by news that Intel's purchases were going to be "radically changed" in both demand and technology mix during the current quarter, an Aavid spokesman told Dow Jones. Second-quarter sales of Aavid's Aavid Thermal Products unit were $28.3 million to computer and network users and $16.5 million to others, the company said. The thermal products unit makes heat management hardware. As inexpensive personal computers increase their market share, Aavid will have to sell its hardware directly to personal computer makers, the company said. Sales to that sector increased 30% during the second quarter, the spokesman said. "We are in good position," he said. Second-quarter sales were $9.1 million in Aavid's Fluent Inc. software unit and $300,000 in the Applied Thermal Technologies design unit. interactive.wsj.com