16 posts are filed under this symbol.

EZ-Chip and Raza Micro at Gilder Telecosm 2006

NPU companies consistently make the case the market is moving into their domain and that technology is their edge, right up to the point they go out of business.

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The End of Telecom As We Know It And I Feel Fine

rem.jpgAnyone know where the next ten-bagger investment is in the Telecom sector? Does anyone believe such an idea is even possible anymore?
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Quake – Another Failed AMCC Acquisition

The slow motion disaster movie that is Applied Micro Circuits Corporation (AMCC) is still in theaters even though investors stopped buying tickets long ago.

Quake AMCCAMCC announced this morning an all cash deal to buy Quake Technologies for $69M net. AMCC has managed to spend nearly $1BB in cash on a number of acquisitions, none of which have provided a return better than simply sticking the dollars in the bank. We feel that Quake will be yet another failed acquisition.

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Intel’s Communication Group – Destiny Fulfilled

intelIntel corp (INTC) lands on Page A1 of the WSJ with a story covering their Analyst Day presentation in New York yesterday. The big news that is getting widespread coverage in many media outlets- including BusinessWeek – is that they are cutting $1BB (8%) in spending but without across the board job cuts.

The big problem is Intel’s work force grew 17% in the last year alone. So, the obvious path is to find businesses with high costs and low revenue, and spin those out to people who can manage them tighter. It sounds like this is exactly what Intel plans to do.
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Why Broadcom is a Scary Competitor

Broadcom (BRCM) is a scary company to compete with. They execute aggressively and have backup plans for when they don’t. They can bring to bear ridiculous amounts of resources, and justify the profligate fixed R&D expense on any one project by targeting high volume markets.

Here’s a question from Fridays Broadcom earnings call that highlighted yet another scary Broadcom trait.

Michael Masdea – Credit Suisse

…. As you converge more and more of certain pure play companies functionality into what youre doing, what kind of competitive responses are you seeing? Do you get worried when you start to take a company’s whole livelihood away that you’re going to see some irrational sort of competition?

Scott McGregor – CEO

Well there’s always a risk. What many companies do if they feel threatened is they cut their price to try and hang onto sockets. What our strategy is with our broad IP portfolio is we do integration of all the different technologies. So we end up eliminating sockets. It’s pretty hard to compete if the socket that you’re in today has been eliminated by being integrated into a larger SOC.

I.e. if you are a niche player you should probably accept that buyout offer from Broadcom before they nuke your business.

Transcript Courtesy Seeking Alpha

PMC-Sierra Acquires Passave

Passave ChipPMC-Sierra Inc. (PMCS) announced at the close today that they are acquiring Passave, a company we havewrittenaboutextensively, for $300M in stock. In fact, I predicted PMC-Sierra would enter this business through acquisition, though I thought Teknovus would be the better path.
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