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Saturday, 10/02/2004 11:33:25 AM

Saturday, October 02, 2004 11:33:25 AM

Post# of 93819
SigmaTel to supply chips for new Apple MP3 player
Posted on Fri, Oct. 01, 2004

NEW YORK (Dow Jones/AP) -- SigmaTel stock rose Friday after a Wall Street firm said the semiconductor company will supply chips for a music player from Apple Computer Inc.

Shares of Austin, Texas-based SigmaTel traded at $23.50, up $2.29, or 11 percent, midday on the Nasdaq Stock Market. The 52-week high of $32.34 was set Jan. 22. The year-low of $13.79 was set July 23.

Citing ``numerous sources in Asia,'' Thomas Weisel analyst Jason Pflaum said Apple will use SigmaTel's controller chips for a player it's planning to launch this Christmas.

SigmaTel and Apple officials weren't immediately available to confirm Apple's plans.

In a research note Friday, the analyst estimates revenue of $2 million to $4 million from the deal in the first full quarter.

Unlike Apple's hugely popular iPod and iPod Mini players, the new player would use solid-state flash memory, which has less capacity but can make for a lighter, cheaper player.

In addition to a possible deal with Apple Computer, the largest maker of hard drive MP3 players, Thomas Weisel's channel checks also revealed a strong third quarter for SigmaTel, Pflaum said.

Thomas Weisel has an investment banking relationship with SigmaTel.


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