BUSINESSWEEK ONLINE : JULY 31, 2000 ISSUE
BUSINESSWEEK INVESTOR -- INSIDE WALL STREET Hot Phone Prospects Microsemi (MSCC) is in transition: A year ago, it supplied semiconductors to the military and aerospace markets. That changed when Microsemi made acquisitions that gave it entree to faster-growing, higher-margin markets. Thinking the shift would bring robust growth, investors snapped up Microsemi shares. Trading at 13 in January, shares surged to 48 in March. But when the market took a big tumble in late March, Microsemi fell to 18. Enter savvy investors who saw Microsemi's potential in hot fields such as wireless phones and handheld devices. The stock has since climbed to 35, and some pros see it hitting 80. ''Cellular phones present a variety of opportunities to Microsemi,'' says Robert Adams of CIBC World Markets. Microsemi's cell-phone parts include power-management circuits that extend battery life and amplifiers that boost signals. ''The number of Microsemi components being used in cellular phones has increased sharply, driving sales way up,'' says Jerry Apodaca of Apodaca Investment Group. Microsemi is also well-positioned in the fiber-optic market, he adds, with its optocouplers, used for high-speed data switching in submarine telecom cables. Gregory Walsh of Red Chip Review, which focuses on small-cap stocks, says Microsemi is ahead of rivals because of its wide experience in the military and space markets. Boeing, Motorola, and Alcatel are among its big customers. Christopher Chaney of A.G. Edwards says Microsemi is a ''primary example of a neglected company with a promising long-term story.'' He expects earnings of 63 cents a share in 2000 and $1.01 in 2001, on revenues of $285 million. By GENE G. MARCIAL _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP					RELATED ITEMS Hot Phone Prospects CHART: Warbling a Bit Louder INTERACT E-Mail to Business Week Online

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