) lowered its Q2 EPS guidance. CS First Boston downgraded its rating on the maker of high-performance integrated circuits to hold from buy.
Analyst Charles Glavin says the company did not add June weakness to its new guidance; however, he believes growth for next two quarters will be tempered as well. Glavin believes much of the weakness continues to come from legacy Oc-48 long-haul products; however, he feels the slowdown has also extended into datacom products. He downgraded the shares on their valuation, and the poor six-month outlook for the company. He also cut his $0.91 fiscal 2001 (Sep.) EPS estimate to $0.55. Glavin says the company's current price-to-book (excluding intangibles) suggests the stock has as much as 40% downside risk to trough valuations reached in the 1998 downturn. He has a $30 target.