ADI has a lot of smart engineers and to retain
them they will HAVE to reset the stock option plan. To
support this they have to buyback their stock--a great
investment for ADI regardless of the option plan. So at sub
$15 how can you go wrong.
Between winning in xDSL,
modems, DSP and let's not forget the linear engine--this
is a bargain.
Analog Devices (ADI) is another one of those badly
beaten down second tier stocks offering good long-term
Stock up nearly 8% yesterday to 17... Best part -
not much overhead resistance until the 21-22 area...
As long as
market/industry tone improves, stock
likely to keep climbing.
RAS DSP for Voice-over-IP Processing
Industry leader chooses ADI's high-density,
flexible gateway for Internet-based
NORWOOD, Mass., Sept. 21 /PRNewswire/ -- Analog
Devices, Inc. (NYSE: ADI)
today announced Ascend
Communications, Inc. (Nasdaq: ASND), selected
ADSP-21mod870 single-chip, remote access server (RAS) digital
(DSP), as the Voice over IP (VoIP)
Gateway Processor for its MultiVoice for
Ascend is utilizing ADI's
single-chip, open-platform DSP, which
industry-leading, on-chip memory and port density, to maximize
chassis, deliver multiple Quality of
Service (QoS) levels including Absolute
QoS for toll
quality voice over IP, and develop future
communications, such as phone-to-PC, Web-to-phone and
Based on Ascend's MAX 6000 remote access
concentrators, MultiVoice for the
MAX provides an interface
between the PSTN (public switched telephone
and IP (Internet Protocol) network. The ADSP-21mod870
bridges the voice-based
continuous connection switched
network and the data-based IP network. The
large, on-chip memory enables fast contact switching to
take place in
real time, allowing Ascend to deliver
optimum QoS levels for low-distortion,
delay-free conversations over the Internet.
6000 is the actual link between the PSTN and the
network," said Jose Garcia, Ascend Product Manager. "ADI's
are the ideal platform for this
critical interconnection. In addition, the
single-chip RAS DSP is the best in its class for power
and density. These characteristics, along with ADI's
extensive experience as
a telecomm DSP supplier, made
the choice an obvious one."
Got this email today:....However I don't
put much faith in an Analysts view! If the
are hiring operators, techs, and engineers it's
even better sign.
Thanks for the hearsay
rroach50. Someone can only
dispute it. Got to find out
what's up somehow.
Or make a good guess.
the text is mixed up
is Bottoming Out, Will
>Rebound in 1999,
NationsBanc Montgomery Securities
Analysts Tell Investors
FRANCISCO--(BUSINESS WIRE)--Sept. 17,
>1998--One of the most
brutal downturns in the history of the
>industry is starting to bottom out, setting the stage for
a rebound during
>1999, according to the
analysts who follow the industry for
>Montgomery Securities (NMS). CONTINUED...
I had to
cut the post here. Message too long..iceng.
full post should be out there.
1) ADI's ATE business has hurt the company's
earnings dramatically in the last 2 quarters.ATE has gone
of total sales during last year's fiscal 4Q
to about 4%. These
chips are among ADI's highest
margin products. Reportedly, Teradyne (half of ADI's
business) has stopped giving new orders.
2)It appears to
me that the main problem with DSP's
complete failure of ADI to penetrate TXN's business
the top-tier handset companies(e.g. Nokia & Ericson).
mainly hearsay but I understand that ADI is seriously
getting-out of handset DSP's.Although successful in the
wireless base station business, selling to Ericson and
other telecom infrasturcture companies, they have been
suffering here from
the slowdown in Asia.
Comparing the IBD earning's ratings of Analog, Linear,
Maxim can lead to misleading conclusions. As I
IBD takes the latest 2 quarters of results
and averages them with
the past 5 years.
Therefore, one bad quarter-like ADI's last one-
disproportionately affect ratings. More importantly, ADI
in a bad light because of the varying product mixes
the companies. For example, one of the best areas of
conductor business during the past year
has been power management. This area accounts for
roughly 50% of Linear's sales
but only a small % of
Analog's revenue. Consequently, Linear's
superior for the latest time period. Meanwhile,
area of specialty, the aforementioned ATE segment,
dragging their results lower. If Linear were gaining
in ADI's dominant data converter
business, there would be more
grounds for concern.
Indeed, Burr-Brown is arguably doing just
I didn't mean that much! "Fine
perhaps. I agree we don't want any
ADI need to ensure
they have the competition taped
where its absolutely necessary. What I'd
real "Mission Critical" issue.
(I would have
thought Year 2000 compliance
would be a no brainer for
a semi company?
Perhaps it's VAX system
A "vertical market segment" is one where they
control every aspect from bottom to top. For example if
you are an oil company, you would be vertical if you
owned oil wells, refineries, and gas stations.
I think ADI is stretching the definition a bit to
mean concentrating on a particular application for DSP
to provide DSP software and DSP chips specially
adapted to that application. I guess they feel they can
make higher profits by making DSP chips which fit a
specific market very well rather than just making general
purpose DSP chips they try to fit all applications
As to reviewing their strategy, I hope they don't do
that every day. They would be wasting a lot of time
and effort by changing their direction every time the
winds changed. Motorola has started and stopped
building a $billion fab in VA twice, not a good use of
money or time.