SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : IDTI - an IC Play on Growth Markets
IDTI 48.990.0%Mar 29 5:00 PM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Charlie Tuna who wrote (3729)9/22/1997 12:47:00 AM
From: Rob S.   of 11555
 
Charlie, IDT was getting closer to $30 for the prior version MIPS parts used in the WebTV (according to company statements) and I expect that they have a customary quantity price break schedule. So if they were charging around $30 at ~100,000 pieces/year, they will probably scale down to $26-$27. That about a 12%-15% discount for the higher quantity which sound like a good ball-park guesstimate number from my experience.

With the small die size and experience curve laready achieved on the 0.35 fab process, the yields should be quite high and costs low. Some of the people on this thread may be able to equate the die size to expected mfg. cost better than I can as I have no direct experience with new fabs. IDT stated around June that the C6, which is twice as large as the MIPS part, would cost around $30 to produce. With yield improvements adding to the increased number of die/wafer, the cost of the MIPS part should be less than 1/2 and probably closer to 1/3 the cost fo the C6. So lets assume that it costs IDT $12 to $14 to make the parts. For high volume parts like this is expected to be, a 60% mark-up over manufactured cost wont be high margin but should be profitable. Another $13-$15 million gross profit before overhead, depreciation and taxes should help out. If they reach near 1 million in sales it will certainly be a nice boost to the sales number. and since a lot of the costs are fixed, the improvement to the bottom line should be more dramatic than the $12-$14 mil. number.

Anyone have any feedback or tweeks on this little analysis?
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News