Tim Luke Quotations

We believe that ongoing weakness in Ericsson's handset business has been widely anticipated by investors, and it may also prompt management to give further consideration to additional strategic options for the handset division, ... These options could include the sale of the division if some improvement is not seen in the next few quarters.

Significantly stronger competition is emerging. The second-tier player is gaining traction.

Ongoing challenges are likely to continue to put near-term pressure on the shares, but our confidence in the outlook for the mobile infrastructure business leads us to rate the shares an 'outperform,' ... However, with 3G sales likely not to add materially to revenues until 2002, we are lowering our expectations in the infrastructure business.

I think there will clearly be some potential impact on the September quarter from the handset subsidy ban in Korea. However, we think that the long-term story for Qualcomm remains very strong.

We continue to believe Fairchild is an early stage restructuring story with the most gross margin leverage in the group.

While Cisco remains our best-positioned vendor, with approximately 15 percent of sales to 'new economy' operators, uncertainty over capital-expenditures spending may continue to suppress its multiple.

We had lowered our estimates last week and some softness had been widely expected, however, a new sales range with a mid point of -12.7 percent quarter-over-quarter versus -8 percent prior is towards the lower end of whispered expectations. While valuation (20x new CY06) may offer some support given the absence of guidance on inventory levels, which we believe are likely to have moved materially higher at Intel, and given ongoing uncertainty on the gross margins outlook, we would retain our cautious stance at current levels.

While inventory levels rose in the first quarter, investors are likely to be encouraged that management increased its revenue guidance from the low 50s to the 50-60 percent range, with earnings per share guidance increasing by 2-to-5 cents.

Emerging market growth is once again the primary driver.

These results add to a long list of negative data points in wireless that have emerged in recent days, further confirming widespread softness in wireless.

the surprising sustainability of 30 percent-plus growth over the next 10 years.

It's a positive deal for Cisco because they're gaining a premiere player in the high-speed access market,

It's strategically important because it shows that they're acquiring a leader, and it helps establish them in that market.