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

To: Trader Dave who wrote (2492)	4/29/1999 3:00:00 AM
From: Thai Chung	Read Replies (1) \| Respond to of 3818

PMC-Sierra Expects High Gross Margins Long Term SAN FRANCISCO (Dow Jones)--PMC-Sierra Inc. (PMCS) Chief Financial Officer John Sullivan said Wednesday the company expects to have near-term gross margins in the high-70 percentage range. PMC-Sierra should have long-term gross margins in the low- to mid-70s, in terms of percentage growth, he said. "We have the highest gross margins of any semiconductor company," said Sullivan during a presentation at Hambrecht & Quist's technology conference. PMC-Sierra forecasts operating margins of around 34% to 35% in the long term with higher operating margins in the near term. Sullivan said that revenue from networking chips tripled in the first quarter to $47 million from the year-ago period. Chief Executive Robert Bailey said during the presentation that PMC-Sierra is seeing trends that are beneficial for the company's growth. Bailey pointed to increased end-user demand,telecommunications companies' outsourcing of chip design and a trend toward the standardization of semiconductors.