Chipmaker Moved To Consumer Field; Now Returns To Military Microsemi Winning In Both It's been a top tech stock by focusing its products on power, sound and light.(INTERNET & TECHNOLOGY)

Byline: JAMES DETAR

Since taking the helm at Microsemi Corp. in November 2000, Chief Executive Jim Peterson has tried hard to change the company's course.

He's steered it away from its older military parts business toward the consumer chips field. Now, in the wake of the Sept. 11 terror attack, he's shifting course again.

Military spending is back in vogue. So Peterson is evaluating product lines to see what fits.

"There may be a few consolidations I'll want to do in the next quarter or two," Peterson said. "We'll have a different product mix."

The company has had outstanding results this year, while other chip companies have faltered. Analysts say its long-term prospects look just as bright. In the near term, though, it may have to scramble to adjust to the changing market.

"There are probably some fairly high expectations for this company, and it has to continue to deliver," said Needham & Co. analyst Jim Ricchiuti in New York. "Some people are expecting some fairly significant earnings growth as they establish themselves in their new markets. It will be difficult."