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Editorial: About Wall Street Placing Bets on War
... As an old war protester from the '60s who made the DoD my news beat throughout the '70s and '80s to better understand the ying and yang of warriors and war backers, I personally found the following news piece repugnant... but realistic: "The Amex Defense Index fell 0.5 percent...
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TRW Opens Up New Automotive App Area for Advanced SensorsAugust 23, 2002...The automotive arm of TRW is developing an "interior vision system"
based on an advanced sensor capable of accurately sensing occupant size and
position, thus delivering real-time reactions as a means of further protecting
the auto's passengers. This new application is likely to be of special interest
and relevance to those within the the compound semi industry who took a leadership
position in developing collision avoidance systems for airbag-related components
for the automotive industry. "One of the biggest challenges facing the occupant
safety industry today is the new FMVSS 208 regulations regarding out-of-position
passengers in the vehicle," explained Doug Campbell, VP of Occupant Safety
Systems at TRW Automotive. "A number of companies, including TRW, are developing
indirect sensing systems primarily based on weight sensors to not only determine
the size of the passenger, but to try and predict if and when these passengers
are considered out-of-position, meaning that a portion of their body is so near
to the airbag that it can cause injury. This is particularly significant when
children or small stature adults have their heads near the airbag when it deploys."
These weight-sensing systems are being developed to meet the FMVSS 208 regulations
when they take effect in 2004. However, TRW believes that its new vision system,
slated for introduction in the 2007 model year, is a better solution to occupant
sensing and passenger protection. The company is currently engaged in development
contracts with three major vehicle manufacturers on three continents to perfect
the system. For those interested in pursuing this applications area, we refer
you to the details in TRW's press
release
Gentex Introduces Latest WhiteLED-Based Rearvision Mirror ModuleAugust 23, 2002...Gentex Corporation of Zeeland, Michigan USA, that innovative designer of the
rearvision mirrors in automobiles that pioneered the use of white LEDs, has
begun shipping its newest line of white lighting. The first autos to incorporate
the new high-feature mirrors will be the 2003 Chrysler Sebring Coupe. Each mirror
contains a map light serving the driver and front seat passenger, using binary
complementary white light versions of Gentex's Orca power "BCW"
HB-LEDs in what the company is calling a highly engineered module. Additional
features include the automatic-dimming electrochromic mirror function, a wireless
control system, and a dual-display showing the external temperature and the
vehicle's compass heading. "We are delighted to have simultaneously launched
production of Orca power LED components in our pilot facility at the same time
we've introduced a state-of-the art, multi-featured application designed around
these components. This program -- our most complex to date -- gave us a great
opportunity to combine the strengths of our Orca and BCW LED technologies with
our traditional manufacturing focus and systems integration capabilities,"
said Gentex Executive VP, Kenneth La Grand, who added: "This product showcases
our unique LED technologies, but also demonstrates our technical capabilities
across an unusual range of disciplines including thermal, optical, and mechanical
engineering, electronics, materials science, chemistry and advanced, high-volume
manufacturing technology. The results are a superior product, refined look and
feel, and improved value. We are optimistic about the prospects for this program
and other similar applications." Each of the patented BCW Orca power LED
components used in these assemblies typically produces in excess of 7.5 lumens
of white light operating at about 0.6 watts. Details on how the new white HB-LEDs
are assembled into circuit assemblies and more technical details are included
in Gentex's press
release
Agilent Adds Claw Power to Big Bear's SiGe Subassemblies and TranspondersAugust 23, 2002...Big Bear Networks of Milpitas, California USA wrestled with the infamous InP
versus SiGe decision for the base of their Photronic Signal Processing (PSP)
technology, and SiGe won. Agilent Technologies' venture unit (AV) appears to
think that was a good decision because they followed Menlo Ventures' lead in
the latest round of funding for Big Bear's efforts. The round raised over $40
million in equity funding. Big Bear previously raised $60 million in two rounds
of private funding from Accel Partners, Austin Ventures, Menlo Ventures, Oak
Investment Partners and Sequoia Capital. "Agilent Ventures' investment in
Big Bear Networks is yet another example of Agilent's willingness to invest
in innovative early-stage technology companies despite the current economic
downturn," said Maximilian Schroeck, managing director for AV. "We see
a number of potential areas for technical collaboration between Agilent and
Big Bear Networks." Adding to that was mark Thompson, President and CEO
of Big Bear who commented, "We are delighted to have gained a strategic investment
partner with expertise across a wide range of high-speed communication technologies,
from test equipment to optical networking. The synergies between the two companies
offer significant possibilities for moving beyond our funding relationship into
a longer-term, mutually beneficial technology partnership." Big Bear did
a number of parallel designs in InP and SiGe during their first year in order
to determine which technology best suited their PSP technology, and volunteered
to disclose details of what went into that decision (and how they intend to
fab their SiGe designs) with our readers. They'll do just that in early September,
so... stay tuned. Meanwhile, details about their relationship with Agilent
can be found in the press
release Keith Evans Joins Veeco-Applied EpiAugust 23, 2002...Veeco-Applied Epi of St. Paul, Minnesota USA has announced that Keith Evans
is their new VP of Advanced Technology. Compound semi industry insiders know
Keith best as the key developer of technology that significantly influenced
the efficiency of MBE epitaxial growth systems while he was a group leader of
MBE crystal growth at the Air Forces' famous Wright Laboratory in Dayton, Ohio.
From Wright Pat, Keith made his initial sojourn into business via SLIC in Binghamton,
New York and from their he moved on to IQE where he served in a number of senior
management position, including VP of Technology and VP of Operations. Keith
is also well known for his volunteer contributions as a member of the board
of directors of GaAs MANTECH. Keith holds a Ph.D. in physical chemistry from
Purdue University and has authored more than 200 journal articles. His new charter
is to lead Veeco-Applied Epi's technology and emerging application development
efforts, using MBE. "Keith has extensive knowledge of MBE and metal organic
vapor phase deposition (MOVPE) technologies from his experience at IQE, the
world's largest epiwafer manufacturer," said Marlin Braun, General Manager
of V-AE. "We can think of no one better to lead our company's expanding team
of MBE scientists as the silicon and compound semiconductor markets converge."
Press
Release
Intense Raises Another $16 MillionAugust 23, 2002...Intense Photonics of High Blantyre, Scotland has closed a £10.5 million ($16
million) series B funding round. Leading the round was Cazenove Private Equity,
and included 3i and ACT Venture Capital, together with two further European
venture capital funds, FNI Venture Capital and TTP Ventures. Intense Photonics
said they will use the funds to accelerate the development of its product range
and strengthen its marketing effort. Commenting on the scale of the fundraising
David Lockwood, CEO of Intense Photonics said "against almost all planning
scenarios this exceptional funding achievement sees the company through to the
generation of positive free cash flow." Tod Bensen, CEO of Cazenove Private
Equity was confident that the syndicate had identified the right investment
despite what Intense termed, in their release, as the current turmoil in
the sector, saying "We have followed the progress of Intense Photonics
for some 18 months and have seen it develop considerably over this period. The
company has a first class management team that is dedicated to extracting value
from its unique technology. The many current and potential applications of Intense
Photonics quantum well intermixing techniques have given us the confidence to
invest in the Company at a time when most photonics companies are struggling
and market visibility remains poor." Adding yet more insight from the view
of the venture community, Robin Winning of 3i's Technology Team said: "the
difficulties in the technology capital markets have tended to conceal the fact
that there are many sound businesses developing technology with a global application.
Intense Photonics is one such business, which is reflected by the overall scale
of 3i's investment in the Company and the fact that we have supported it from
startup. The business has considerable long term potential and we look forward
to working with and adding value to the management team as they pursue their
growth strategy." More details, which includes considerable information
from the venture perspective, are included in Intense's press
release ADC's Outlook Remains GrimAugust 23, 2002...ADC weighed in this week with their quarterly earnings and their news indicates
that, as a significant systems integrator, they still don't see much light at
the end of the telecom tunnel. "As the extent of the downturn and the eventual
recovery in this difficult market is uncertain, we are now taking additional
cost reduction actions to lower our quarterly sales break-even point below $250
million," said Rick Roscitt, Chairman and CEO of ADC. "We remain steadfast
in achieving our three strategic goals for ADC to become a stronger, more profitable
growth company. First, return to profitability as soon as possible. Second,
strengthen our already solid balance sheet, which includes a significant amount
of cash. Third, increase market share in our core competency areas including
broadband connectivity, HDSL systems, systems integration services, IP cable
systems, operation support systems software, and wireless transport/coverage
systems." ADC's cutback decisions have included the selling (or closing)
of their optical components business by the end of October. That unit includes
a complete line of passive and active optical components, including tunable
and pump lasers and facilities. ADC has reduced its workforce by approximately
25% through both voluntary and involuntary reductions and at the end of the
third quarter, ADC had approximately 9,000 employees. They have announced their
attention to complete additional workforce reductions during the fourth quarter
of 2002 in amounts not yet determined and that their current planned revenues
in the fourth quarter of 2002 will be around $200 million. They added a telling
caution to investors that "forecasting in these industry conditions remains
extremely difficult and subject to change." Details are in ADC's financial
release. Our news features are reported
by the CompoundSemi News staff writers.
For submissions or content suggestions, you can contact us using
editor -at - compoundsemi.com
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The
McDonald Report
Commentary & Perspective...
August 23, 2002...As an old war protester from the '60s who made the DoD my news beat throughout
the '70s and '80s to better understand the ying and yang of warriors and war
backers, I personally found the following news piece repugnant... but realistic:
"The Amex Defense Index fell 0.5 percent on a day that saw the Dow Jones
Industrial Average retake the 9,000 level for the first time in six weeks. On
a broader level, just the possibility of a U.S. attack on Iraq is enough reason
for investor exposure to the defense sector, Merrill Lynch said. Merrill Lynch
highlighted shares of ammunition and rocketry specialist ATK and Raytheon, maker
of the Patriot air-defense missile system. That said, the analysts noted that
'investors can reassess their defense holdings if no war occurs, or after a
week or two into a military campaign.' " It was included in a roundup
article
datelined Aug. 22nd and written by August Cole for CBS.MarketWatch.com.
Why do I find this repugnant? Good question. Probably because... and
I repeat... I'm an old war protester from the '60s. I sincerely want the
peace-loving people of the world, like myself, not to be put in the position
where war talk makes headline news. My stomach churns when I hear of people "betting" on profits to be made from saber rattling. The line that got me was: "...That said, the analysts noted that
'investors can reassess their defense holdings if no war occurs, or after a
week or two into a military campaign.'" For 40 years my antiwar philosophy
has never changed, although my eyes are wider open. And I will continue to do
whatever I can to influence a change in people's attitudes that focus on intolerance,
for that is what's at the heart of disputes that lead to war. Intolerance, and ignorance. Our Texas
Wildfire band (which is led by my husband, Bill Randall, who was drafted
into the Viet Nam conflict), played the Welcome Home Concert this
week for a private university in Kerrvile, Texas. All the freshmen attended
and learned about the roots of rock and blues, and were made more aware of the
bounty of excellent music that was created in those turbulent '60s. Looking at
all those young faces and happy smiles, rocking out with us, I felt reassured
that my anti-war philosophy simply must prevail. Those young people should
not have to be forced by their government to go to war, as we were forced to
do. As the MarketWatch article reminds us, however, the USA's current
administration's saber rattling is heavily backed by America's financial community. When someone remarks that "war is good for the economy" the same gut wrentching takes place. War isn't good for anyone or anything.
Obviously, we too cover defense-related news in CompoundSemi News...
because it's news. ONR, Wright Labs, NRL, DARPA, and the whole of the R&D
side of the USA's DoD supports leading edge technology development, and much
of our compound semi community is heavily dependent on such government support.
But I know a lot of DoD program managers, and not one of them could be typecast
as a "war monger" and they're certainly not profiteers. Quite the
contrary. They are first and foremost scientists, and secondly, they are realists.
They would sincerely like to see the technologies they back ultimately lead
to true deterrents to war. It's the politicians and backers who are in it for
the "almighty buck" that worry me... not these hard working government
employees who try and spend our tax monies wisely. As the world famous cartoon
character, Pogo, said so wisely
on Earth Day 1971: "We
have met the enemy, and it is us."
Tis the SeasonAugust 22, 2002...In the spirit of full disclosure (and presumably easier/better means of accessing
facts such as the financials) as reported this week to the SEC by some of the newsmaking
publicly held USA companies active in the compounds, here are the first wave
of numbers the financial community so readily and necessarily feeds upon:
Celeritek which has been
in the news as courted for takeover by its customer Anaran; Kopin,
which is fanning out from HBTs to HB-LEDs; TriQuint
which is a compound semi foundry's foundry, RF
MicroDevices, which just keeps controlling key application areas; Endwave
which we haven't heard from lately but would like to (they're old pros at defense
apps); Microsemi &
ATMI which represent companies
that do leading edge compound development as only a portion of their core businesses;
Vitesse which is looking
more towards silicon solutions than to their original roots; Also just posted are Emcore's,which is the direct opposite of Vitesse in that it sticks to only compounds, is one of the few truly vertical companies, and retains the overwhelming lead in compound semi advanced MOCVD development. Then there's Signal
Technology which seems to score excellent defense contracts; Sirenza,
which appears on a roll, and last but not least, New
Focus which seems representative of so many promising telecom new starts. If you have questions about the
solid state lighting and compound semiconductor industries or have news
or views to share, I'm Jo Ann McDonald, Editor of LIGHTimes and CompoundSemi News.
Feel free to contact me directly, anytime. 
My direct tel at the ranch is
+1-325-463-5345
From time to time Jo Ann may comment on companies in which she holds a
modest investment - be sure to read
her disclosure at some point in time... |