IDTI - an IC Play on Growth Markets Message Board

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Technology Stocks : IDTI - an IC Play on Growth Markets

IDTI 48.99

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Mar 29 5:00 PM EST

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To: OldAIMGuy who wrote (3523)	9/4/1997 6:13:00 PM
From: Rob S.	of 11555

AMD makes the K6 and are being punded because they have not been able to charge as much as they need to to pay off their huge development and fab costs. IDT may get hurt some because the prospects for netting future profits from the C6 might be viewed as being dimmer. You shouldn't be buying IDT because of the C6. After announcing the product with a lot of flag waving and expectations that they would soon have some major OEMs lined up, the results have been very dissapointing so far. The C6 is likely to play a minor role - mostly in embeded applications in portable devices that need x86 compatibility and maybe in low-end laptops. How successful it will be in the desktop market is not understood. What will posibly hurt IDT's chances with the C6 more than anything else is NSM/Cyrix's success with the MediaGX line. The total system cost of a MediaGX system makes the processor and logic chip essentially free in comparison to a standard Pentium architecture motherboard that requires the additional sound card, video card or on-board chip, and dedicated video memory and cache. The total power budget for this combination takes away form the power savings due to the processor savings. IDT needs to get the C6 into volume production ASAP and at speed grades of at least 200 MHz. Otherwise, it will possibly be relagated to a small number of applications. On the other side of the competitive scene is the upcoming Java processors. Compaq, IBM, SUN (of course) and others have announced plans to make Java the standard for internet appliances. If those effort proves a success, that could wipe out much of the embeded and low end of the market. Of course, that will take 2-3 years to build development and support momentum and acceptance develop into a serious market threat. The only known reason to buy IDT at this point is because of their products other than the C6. It is unlikely to be such a major product introductoin that it will add much to the bottom line for several quarters.

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