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

To: Trader Dave who wrote (2075)	9/1/1998 8:17:00 PM
From: Bulldozer	Read Replies (1) \| Respond to of 3818

Saw this guy's post on Yahoo and for anyone who wants to read it, hear is the link - messages.yahoo.com@m2.yahoo.com Sounds like he spent too much time at the beach. Don't have much time to go into details (and certainly not at a network engineer level at any rate) since I have to get home to finish building a web site and then catch an early flight out of the country - BUT - IMHO this guy is totally missing the boat - 1. PMCS is a WAN company. There is a HUGE difference between products and technological expertise for the WAN vs. the LAN. True, enterprise campus backbones do employ a considerable about of OC-3 ATM (which PMCS dominates), and the Layer 3 offerings from Cisco, COMS, Extreme, Madge etc., provide a decent alternative and/or companion to the network. There are many arguments about the merits of Layer 3 switching and in general, its a great technology. Of course, most of the vendors use proprietary ASICS, thats the way the technologies always start. But this is not a forum for Layer 2/3 - vs. Switch/Router configurations. The bottom line is that this market represents a small portion of PMC's business. It is also a GE vs ATM argument and PMC is positioned for both. 2. Trader Dave was correct in the evolution to ASSPs. The cycle from programmable PLDs to ASICS to ASSPs is a given, and as PMCS develops the IgT technology further, eventually there should be significant opportunity in the most processor oriented layer of the network. My understanding is that 95% of the higher level functions in network vendor switches are proprietary. This will change - MMCN is betting their company on it. 3. His comment - "Forget that PMC is used in the phone industry" - made me fall off my chair laughing! Okay, forget that PMC supplies major chips to every major vendor that supplies equipment to a $800 Billion industry. Lets also forget that this industry is in the process of a complete re-tooling and will be spending billions and billions more to upgrade the core, edge and access points. Yeah right - bad business to be in. Billy Joe - IgT certainly extends PMC's reach. End to end, price, design wins already in hand, certainly bode well as factors that can keep PMCS at the top of vendor's bid list. Comps include MMCN, LU, Galileo, etc. Although my understanding is that MMCN is oriented more towards the LAN and IgT is (of course) more oriented towards the WAN. Be interested in your thoughts. Well gotta go - would be very interested to hear others point of view when I return next week. Bulldozer