My current thinking:
IDT being a penny off in a very, very, tough IC market is
not too bad. Relatively, if they are making money now and
can continue to do so while they diversify and strengthen
they will be just fine. It's very bad out there.
I like the fact that their revenues increased to $150K. If
they can keep growing and, with the above in mind, they should
be well positioned for the coming semiconductor supply and demand
short fall or boom. Boom meaning when capacity becomes an issue
and unit price goes up. Coming is correct because sooner or
later it will come. With less capital spending, it will come
sooner.
Although I wish they were proceeding faster with their C6
production, at least they are making progress. If they can
get the C6+ ramped sooner, based upon a decreased learning
curve requirement, we can still make big headway. Going back
to point number one, they can become a $1B company quite easily
if this happens along with a major computer company signing
up (don't know anything about this prospect other than it has
been hinted at for later this year??).
In terms of diversification, their RISC line looks good. And
then their are FIFO's, SRAM, etc. that during a general boom
will come back to help.
All in all, I doubt that I will throw in the towel and give up
until A) I lose faith in the IDT diversification effort or B)
I lose faith that a general semiconductor rebound is not some-
where on the near to mid-term horizon.
This is my current thinking.
JB |
