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

0.0%

Mar 29 5:00 PM EST

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To: Steve Lewis who wrote (7336)	3/11/1998 12:31:00 PM
From: Rob S.	Read Replies (1) of 11555

IDTI is expanding IC production and assembly capacity at a good time. The downturn in business in Asia and elsewhere leaves a gap in the production plans for semi equipment suppliers. That should put IDTI into a more flexible negotiating position that may lead to somewhat lower costs and greater ease of ramping the production of the C6 and other products. However, Intel, NSM/Cyrix/IBM and AMD/IBM plan to greatly increase production of uPs for the sub $1000 and sub $750 market. Cost points will almost certainly be pushed down much further than they are now. IDTI may have a brief window to build the "critical mass" to continue to compete in an increasingly cost competitive environment. What they have going for them is a "dead-on" product orientation strategy and an excellent design team. What they have working against them is lack of production and sales mass that may be needed to continue to diversify product offerings and ramp operations succesfully. It's become a situation in which Glen Henry's (Centaur/IDTI's) vision for what a major sector of the PC industry would be driven toward has proven valid but where that vision is frustrated by the fact that IDTI has such a minimal amount of ramped production capacity now in place. You can look at that as a frustration and either a major missed opportunity or a great fulfillment or promise, depending on how well IDTI manages to execute. A truly great opportunity for a small, very well positioned company that has most of the "core competencies" to compete favorably from a technical and cost perspective. IMO, IDTI will not move past the previous highs or move much further down until more information comes out that either confirms or denies their execution on this potential. The opportuity is enticing enough to continue to hold most investors into the stock but the posibility of failure to execute properly or increased market uncertainty will hold it from reaching past what is now known with fair certainty.

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