Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bulldozer who wrote (2499)	5/12/1999 10:23:00 AM
From: Wizard	Read Replies (1) \| Respond to of 3818

The way I understand Maker is that a signal comes into the edge of a network to the physical layer where PMC's chips extract the signal (at say an ATM Switch) and send it to a router for processing where various components (including Maker's) process the signal to send to the switch fabric to the outgoing port. Maker's $$ silicon content is similar to what physical layer chips get but since you are already at an aggregated point, the number of boxes you can be in is much smaller as you inherently need less processors than physical layer interfaces (less routers than switches). Maker's gross margins back this $$ content claim up as they are into the high 60%'s. Maker says they are in 15+ products that shipped in Q1 and that they have over 50 design wins. They say they are in: Cisco GSR12000, Catalyst 8500, 6000, 5500 Ascend CBX500 Lucent Packetstar Therefore, they are in both some edge switches (CBX500 and Ciscos Catalyst family) and carrier-class routers (GSR12000 and Lucent Packetstar). The guys running it are from LSI Logic. Also, Cisco bought 500k shares at the IPO price. They have the right customer design wins and long product cycles so they deserve a multiple in line with others with same characteristics (PMC and VTSS), IMO.