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Monday, September 25, 2006

Calls of Note Part 2

- Jefferies notes that based upon recent checks, they believe Cingular is expected to launch its own location-based services offering very soon. Investors have been waiting for this for some time as it is a big first step for SiRF Tech (NASDAQ:SIRF) to begin to tap into the significant wireless opportunity.

They believe the service will only be available on select handsets to start - Motorola RAZR V3i, Motorola SLVR L7, Palm Treo 650, and Cingular 8125 - bu expect additional handsets will be added including those with integrated GPS chipsets. Firm believes that Cingular will be rolling out this service nationwide with the GlobalSat BT-338 GPS Receiver (using SiRFstarIII)

lthough the fundamental impact will not be significant yet, the Cingular announcement represents a strong validation for LBS. They do not expect the rollout of LBS by Cingular to have a material impact to revenue in 2H:06, but do believe it paves the way for significant revenue contribution in 2007. T- Mobile will not be far behind in launching its own LBS offering in the U.S.

Concerns regarding Q4 revenue growth will likely be eased as investors will begin to look to 2007.

Reits Buy and $31 tgt.

Notabelcalls: Expect to see some buy interest in SIRF following the note.

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