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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: Burjis S. who wrote (32490)	4/10/1999 1:35:00 AM
From: SMALL FRY	Respond to of 120523

GBIX - will do buddy... like PDQ! SF

To: Burjis S. who wrote (32490)	4/10/1999 1:53:00 AM
From: SMALL FRY	Respond to of 120523

Burj, VTSS - if you like bottom fishing... here's a recently beaten down stock. Investors forgot that this baby has eight 8 of 10 fingers in the ADSL chip cookie jar... and that one is just now coming into heavy favorable mention in all telecommuting press releases. The May call options looking rather cheap... VQTEJ or VQTEK slightly out of the money.. Vitesse Shares Drop 11% After Lucent Announces Outsourcing Plans Dow Jones Online News, Friday, April 09, 1999 at 20:29 NEW YORK -(Dow Jones)- Shares of Vitesse Semiconductor Corp., which makes telephone and data computer chips, fell more than 11% Friday on news that Lucent Technologies Inc., Vitesse's largest customer, will outsource some of its telecommunications equipment production, analysts said. Shares of Vitesse fell $6.625 to settle at $51 on Friday. Analysts and investors learned in a conference call with Vitesse (VTSS) Thursday that Lucent (LU) will contract outside manufacturers to meet increased demand for its telephony products. Some of the business Vitesse once conducted with Lucent will now be transferred to these third-party manufacturers and this has some investors worried. "Anything that disrupts the status quo is spooky for investors," said Daniel Myers, an analyst with Lehman Brothers Inc. "People tend to sell stock and do the analysis later." Rick Faust, an analyst with Kaufman Bros. LP, said it is "doubtful" that Lucent's decision to outsource its telephony-equipment production will have an impact on Vitesse's third-quarter earnings. However, analysts noted that the company's book-to-bill ratio may be affected as Vitesse begins to sell to the third-party manufacturers. Faust said Vitesse's book-to-bill ratio, which is calculated by dividing orders by shipments, will drop from 1.13 to about 1.11. Analysts noted that the possible decline added to the sell-off of Vitesse's shares Friday. "People are confused about the impact of book-to-bill ratios," said Faust, but "in our view, these concerns are overblown." "There will be a lead time reduction for one to two quarters," said Lehman analyst Myers. "But there's no risk to backlog." After the market closed Thursday, Vitesse reported second quarter operating income of 22 cents per share, beating a First Call Corp consensus estimate of 21 cents and year-ago earnings of 16 cents. - Chelsea Emery; 201-938-5393 Copyright (c) 1999 Dow Jones & Company, Inc. All Rights Reserved. Companies or Securities discussed in this article: Symbol Name NYSE:LU Lucent Technologies NASDAQ:VTSS Vitesse Semiconductor SF