Daniel Niles Believe Quotations

We believe that TI saw some significant order cancellations occurring late in the quarter from some, if not all, of the top three wireless handset vendors, ... We believe that GSM handsets in Europe are not selling well and, as a result, Ericsson canceled components for GSM handset orders to TI as they did with all of their other suppliers late in the third quarter.

We continue to believe this is a second half story, but need to see revenue growth return year-over-year given this is the third-quarter in a row of revenue estimate reductions.

We believed that Cisco's results would further magnify the inventory problems facing their semiconductor suppliers -- and they did, ... While revenue increased 14 percent from the previous quarter, total inventory increased 59 percent and raw materials increased 335 percent.

We believe both revenue growth and margins are within the range of guidance given in the third-quarter earnings release and feel comfortable with our estimates for the fourth quarter.

We believe PC demand in the last two weeks of December was terrible, leading to lower expectations for 2001.

We believe the semiconductor inventory correction is far from over.

We believe that since Intel's pre-announcement in early December that consumer and commercial demand has continued to get worse with commercial showing the most disturbing trends. In addition, we believe that servers, which had actually been on track for part of the quarter, saw some softening that we believe is related to corporate IT budget stretch outs.

Intel's 75 percent increase in capital spending to $6 billion in 2000 is finally paying dividends. We believe that Intel now has the capacity to ship 15 percent more processor units quarter-over-quarter. We also believe that average selling prices are very firm for the third quarter.