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Memory products makers eyeing higher Q4 prices

Posted on: Friday, 14 November 2003, 06:00 CST

TECHNOLOGY

Technologent Buys Customer List, Other Avcom Assets; CMS Licenses Software to Seagate

Orange County's memory products makers could be in for a good fourth quarter.

For the past couple of weeks, prices of the most basic form of computer memory-dynamic random access memory, or DRAM-have held stable.

That could mean higher prices come the fourth quarter, according to El Segundo-based market researcher iSuppli Corp.

"Once PC (makers) commence their Christmas component buying cycle in October, spot market prices will increase, but not dramatically," said Nam Hyung Kim, an iSuppli analyst.

That could bode well for memory products makers such as Fountain Valley's Kingston Technology Co., which has seen higher sales in the past year, thanks in part to better memory prices. The company recently said it plans to expand its Chinese assembly plant (see story, page 1).

Nearly all of the major memory products makers are based here, except for a handful of others including Farsippany, N.J.-based PNY Technologies Inc. and Fremont-based Smart Modular Technologies Inc., part of Solectron Corp.

Andrew Simons

Memory board prices are closely tied to chip prices. The memory products industry is pulling out of its worst downturn in the past two years. During that time, local board makers were paying less for chips. But computer makers and consumers also were paying less for memory boards. That squeezed profits at Kingston, Santa Ana's SimpleTech Inc. and Rancho Santa Margarita-based Viking Interworks, part of Sanmina-SCI Corp.

Kingston has been the only OC memory product maker to shift work to China-largely because its sales are dependent on commodity memory products for computer makers. Last year, Viking said it was looking at possibly opening a plant in Mexico, but there's still no word on those plans.

ISuppli warned things could change in the memory market. Computer makers, "suppliers and traders in the DRAM value chain now are all being extremely cautious about market demand," Kim said. "Even a small negative signal regarding demand in the fourth quarter could impact the market badly."

Technologent Buys Avcom List

Rancho Santa Margarita-based Technologent Corp. recently bought a customer database from Silicon Valley's Avcom Technologies Inc.

Technologent is a technology contractor that sets up computer systems for companies. Sunnyvale-based Avcom, which provided servers, data storage and computers to businesses, closed earlier this year.

The Technologent deal closed two weeks ago and includes the customer list and other Avcom assets, which Technologent didn't disclose.

"We are excited about this acquisition and eager to showcase Technologent's outstanding products, service and support to former Avcom customers," said Tom Gallaway, Technologent's chief executive and founder.

UCI Lures Michigan Prof

The University of California, Irvine has hired another professor from the University of Michigan, which has a top 20 engineering school.

Albert Yee is set to join UCI as director of the California Institute for Telecommunications and Information Technology, a joint project with the University of California, San Diego.

Yee's hire completes the management for the institute, which is one of several new study centers started under engineering school dean Nicolaos Alexopoulos. Another is the Center of Pervasive Communications and Computing, which has landed government grants. On top of that, the school added a biomedical engineering department last year.

"I look forward to joining this fast-growing institute and one of the highest-ranked public universities in the U.S.," Yee said. "As director, my primary goal will be to enhance partnerships between academia and industry, assuring that (the institute) continues to be a model of collaboration, as well as a premier cross-disciplinary center."

CMS Licenses to Seagate

Costa Mesa-based CMS Peripherals Inc., a maker of software used to back up data on storage devices, recently inked a licensing pact with Scotts Valley-based Seagate Technology Inc.

The software licensed by Seagate, called BounceBack, allows computer users an alternate method of retrieving lost or damaged data on a disk drive.

Under terms of the deal, Seagate plans to bundle the new BounceBack Express with its retail drives and the new external drives for notebook and desktop computers.

"We're excited Seagate selected CMS," said Ken Burke, president of CMS Peripherals. "This agreement reinforces the growing demand by computer users for a practical backup strategy."

Mindspeed Unveils Chips

Newport Beach-based Mindspeed Technologies Inc., the Conexant spinoff that makes networking chips, said it extended its line of cross-point switches.

The new chips allow customers to monitor the real-time health of networks more efficiently, the company says.

"These devices provide monitoring features for bringing up and diagnosing systems with minimal cost and time," said Paul Duran, product line manager for Mindspeed. "The multirate capability of these devices strongly positions Mindspeed to penetrate the storage and enterprise markets, while giving customers the flexibility to utilize a single solution for multiple applications."

Copyright CBJ, L. P. Oct 6-Oct 12, 2003

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