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To: djane who wrote (52279)	8/18/1998 10:14:00 PM
From: djane	Read Replies (1) \| Respond to of 61433

Silicon Valley: Vitesse, Applied Micro Strangely Slammed in Ciena Selloff thestreet.com By Marcy Burstiner Staff Reporter 8/18/98 3:16 PM ET SAN FRANCISCO -- When Ciena (CIEN:Nasdaq) fell 24% Friday, some investors reasoned that, since the shin bone's connected to the knee bone, networking chip makers like Vitesse (VTSS:Nasdaq) and Applied Micro Circuits (AMCC:Nasdaq) would also suffer. They reasoned wrong, but the chip makers' stocks still suffered. Vitesse fell 8% and Applied Micro tumbled 6% Friday on news that Ciena would post disappointing third-quarter earnings and that it lost business with AT&T (T:NYSE). Fund managers and analysts alike were hearing the same knee-jerk reasoning: If AT&T dumped Ciena then it follows that Ciena, which makes fiber-optical products, would cut back business with suppliers Vitesse and Applied Micro. And two trading days later, the market was still buying that logic, at least for Vitesse. On Monday, Vitesse dropped another 3% before stabilizing, while Applied Micro rallied to gain back 7%. Tuesday afternoon Vitesse was trading up 2 5/8 at 35 1/4, while Applied Micro was up 1/4 at 35 7/8. Problem is, neither chip company is dependent on Ciena. Applied Micro responded to the news with a shrug. "We do supply to Ciena, but we are in the early stages of the relationship with them," said spokesman Bill Berridge. "If that business didn't exist it wouldn't have any significant impact on our revenues." At Vitesse, which didn't return calls, Ciena accounts for less than 1% of sales. NationsBanc Montgomery Securities analyst Clark Westmont (his firm has no underwriting relationship with Vitesse and helped underwrite Applied Micro's IPO in May) is dumbfounded: "Anyone who would sell the stock on the Ciena news doesn't know what they own." In fact, the slide was just what the doctor ordered for fund managers who have been kicking themselves all year for not buying Vitesse last December. Vitesse, which is French for "speed," makes networking chips that are used to connect fiber-optic lines to traditional phone lines. The fortunes of fiber optics are so bright that Vitesse's stock had risen, by Thursday's close, 116% to 36 year-to-date. Even for fans of the stock, however, the company's price-to-earnings ratio of 61 was quite rich. William Hakes, executive vice president of $100 million Statistical Advisers fund, bought Vitesse in January 1996, and sold it at the end of last year at about 25. Now, he's eyeing it for a new hedge fund if it sinks near 30. "If it pulls back another couple of points, we will get back in," Hakes said. Vitesse is much more dependent on Lucent (LU:NYSE), which accounts for 20% of its sales, than Ciena. "Vitesse is the only vendor to both Lucent and Ciena so they get it coming and going," said Tim Kellis, an analyst with Adams Harkness & Hill. Kellis, whose firm has no underwriting relationship with Vitesse, has a buy rating on the stock. Since Ciena's loss will likely be Lucent's gain, any dip in orders from Ciena will quite possibly be made up with an increase in orders from Lucent. See Also SILICON VALLEY Love Is in the Airwaves for WinStar 8/14/98 12 PM SILICON VALLEY Global Crossing Seeks Safe Passage 8/13/98 12 PM SILICON VALLEY Adobe Puts Up a Brick 8/12/98 11 AM SILICON VALLEY ARCHIVE Vitesse Company Quotes Applied Micro Company Quotes Ciena Company Quotes c 1998 TheStreet.com, All Rights Reserved. TOP \| ABOUT US \| CONTENTS \| SUBSCRIBE \| ADVERTISE \| TRADE ONLINE \| FEEDBACK \| SEARCH \| HELP

To: djane who wrote (52279)	8/18/1998 10:23:00 PM
From: djane	Read Replies (2) \| Respond to of 61433

FORE Systems Continues [LAN] ATM Market Leadership [Dell'Oro and In-Stat] Tuesday August 18, 5:18 pm Eastern Time Company Press Release SOURCE: FORE Systems, Inc. FORE Leads the Way in ATM Revenue for Second Quarter of 1998 and First Half of 1998 According to Industry Research Firms PITTSBURGH, Aug. 18 /PRNewswire/ -- FORE Systems, Inc. (Nasdaq: FORE - news), a global supplier of networking solutions based on an Intelligent Infrastructure(TM), today announced that, according to recent industry studies, FORE continued its position as the worldwide leader in ATM (asynchronous transfer mode) local area network (LAN) switch revenues for both the second quarter (Q2) of 1998 and the first half (H1) of 1998. The research studies were published separately by the Dell'Oro Group of Portola Valley, California, and by In-Stat, of Scottsdale, Arizona. ''Over the last four quarters, FORE Systems' ATM sales have totalled $224 million versus $171 million and $144 million for the next closest competitors,'' commented Tam Dell'Oro, president of the Dell'Oro Group. ''FORE's ATM sales revenue has increased 183% year-over-year, versus 50% and 15% for the next closest competitors. Furthermore, over 80% of FORE's ATM sales are deployed in corporate backbones while the bulk of their competitors' products are deployed in data-center or aggrigation applications.'' According to the study published by the Dell'Oro Group, FORE Systems holds a 23.9 percent share of ATM LAN switch revenues for Q2 1998. The In-Stat study yielded similar results, with FORE owning 30.1 percent of revenue in the same period. FORE maintained its leadership in revenue share figures for H1 1998 as well, with the Dell'Oro Group reporting FORE's share at 25.9 percent of ATM LAN switch revenues and In-Stat reporting 31.2 percent. ''We are very pleased to maintain and extend our leadership position in the ATM marketplace,'' added Thomas J. Gill, president and CEO of FORE Systems. ''We are seeing more and more customers relying on our ATM products to provide a flexible, scalable and resilient foundation for building their networks. These independent reports continue to confirm our leadership position.'' In recent months, FORE Systems has announced new enterprise customers including Prudential, Dr Pepper/Seven-Up and Unisys Worldwide Telecommunications; and new service provider customers such as Level 3 Communications and Time Warner Communications. ''Within corporate network backbones which are ATM based, FORE Systems' technology dominates that of all other ATM solution providers,'' added Dell'Oro. ''FORE Systems is in an excellent position to extend their strong brand in the enterprise market into the burgeoning carrier and service provider markets.'' About FORE Systems FORE Systems is a leading global supplier of networking solutions based on an Intelligent Infrastructure designed to handle the networked applications of today and tomorrow. FORE's Networks of Steel(TM) deliver the increased capacity, reduced complexity and unparalleled flexibility and scalability necessary to build networks that last. Thousands of enterprise and service provider customers worldwide have put FORE Systems' solutions at the heart of their networks. For more information on FORE's Networks of Steel, call 888-404-0444 or visit the FORE Systems web site at www.fore.com. This press release contains forward-looking statements with respect to products, future growth and other matters. Please refer to the Annual Report on Form 10-K filed by FORE Systems with the Securities and Exchange Commission in June, 1998, for a discussion of risks that could cause actual results to differ materially from such statements. FORE Systems is a registered trademark of FORE Systems, Inc. Intelligent Infrastructure and Networks of Steel are trademarks of FORE Systems, Inc. All other brand or product names are trademarks of their respective holders. All FORE Systems' editorial information and graphics can be found on NEWSdesk, the high-tech Internet Network at newsdesk.com . SOURCE: FORE Systems, Inc. More Quotes and News: Fore Systems Inc (Nasdaq:FORE - news) Related News Categories: computers, networking Help Copyright c 1998 PRNewswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon. See our Important Disclaimers and Legal Information. Questions or Comments?