How will re-valuation affect semiconductor companies? (PMCS 2Q05 conf call)

by: Ezra Marbach

PMC-Sierra (ticker: PMCS) CFO Alan Krock had this to say yesterday during management's Q2 2005 earnings results conference call:

....Well, you know, it's hard to say what global economic events are going to -- how global economic events are going to impact any one country or company. But given that all of the semiconductor industry essentially sells in U.S. dollar denominated prices, I would assume the implication is the dollar will depreciate relative to the Yuan and therefore, our products will appear more cost effectively -- more cost effective, potentially, to our base of customers there.

....So, we would hope that that would have a positive impact, but given the relatively near-term nature of the announcement, it's hard to say for sure.

(Quotes are from the CCBN StreetEvents transcript.)

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