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Technology Stocks : Vitesse Semiconductor -- Ignore unavailable to you. Want to Upgrade?

To: A. Edwards who wrote (2549)	5/26/1999 9:27:00 AM
From: Beltropolis Boy	Respond to of 4710

>Analysts appeared to be confident in the current tone of business ... and then some! ----- Analysts embrace Vitesse Keen on acquisition; see it 'on track' for upcoming quarter By Lisa J Ulmer, CBS MarketWatch Last Update: 4:23 PM ET May 25 CAMARILLO, Calif. (CBS.MW) -- A slew of analysts expressed their confidence in Vitesse Semiconductor Corp. Tuesday on news that the integrated circuit maker has agreed to acquire a private silicon-based company, a move that would expand Vitesse's product presence in the telecommunications and data communications markets. The analysts also said they see the company on track to meet earnings estimates in its third quarter. Investors did not respond with great enthusiasm to the news, however, as shares dropped 2 1/16 to 50 9/16. On Monday, Vitesse said it agreed to acquire all equity interests of XaQti Corp. for $65 million in stock. The company expects the deal to have "no material impact" on its financial results. See press release. Analysts at Credit Suisse First Boston, SG Cowen and Prudential Securities all reiterated their buy ratings on the company, citing the deal as a strategic step that will further Vitesse's networking capabilities and synergize its products in the gigabit Ethernet market. "XaQti, a more silicon-based network-centric company, is a natural extension to Vitesse's strategy to lead the way with high volume products," said Credit Suisse analyst Chris Kwak in a research note. XaQti is a supplier of chips for high bandwidth communications products. Kwak reiterated a "strong buy" rating on the company and also said he expects its third-quarter earnings to be in line with his estimate of 24 cents a share. "We believe Vitesse is on a solid roadmap that promises good revenue and earnings growth potential in the coming years," said Prudential analysts Hans Mosesmann and Alex Gauna in their report. Mosesmann and Gauna also said the company's current quarter is "tracking well." The First Call consensus for Vitesse's third-quarter profits is 23 cents. The company earned 18 cents in the year-prior same period.