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Technology Stocks : C-Cube
CUBE 36.22+1.2%3:59 PM EST
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To: BillyG who wrote (18699)7/17/1997 7:01:00 PM
From: DiViT   of 50808
 
"Just so we all know that CUBE used less capacity than it predicted"

Or it spent less on production than it predicted, because of cost reductions.

For example let's say the 5yr plan said, at current production costs, production needs will cost $48mm over the next 5 years.
You pay $24mm up front and reserve the right to secure the rest of your capacity need for another $24mm later on.

Then the overpaid engineers (not directed at you Billy) cost reduce the chips and at the same time wafer production costs drop.
So now your production costs are cut by over 50%.
Same number of chips at half the cost.

I'm not saying this is the answer, just putting it out for consideration.
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