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: Norrin Radd who wrote (8985)	6/24/1998 2:18:00 PM
From: Rob S.	Read Replies (2) of 11555

A major mis-perception about the current situation is that there is a major slump in PC related demand. That is wrong, wrong, wrong. Demand is growing at a fairly healthy pace despite the downturn in Asia. One example of that is the health of the major computer stuff distributors; biz.yahoo.com TECH Data has confirmed that they will meet analysts estimates for earnings - the stock is up over 6. The semi market is continuing to see aggressive price adjustments in uP arena. This is the last major segment of the industry to undergo correction to the more competitive supply/demand climate that most semis have experienced over the past three+ years. The sacred cow Intel is getting some wind knocked out of its sails - the fat 60% margins seen a year ago were down to 55% last quarter and will likely, IMO, move down to around 40% over the next 18 months. IDTI has a design-for-price strategy that can prove to be effective if the company produces the volumes that Perham has mentioned - 2.5 to 4 million parts over the next 9-12 months. His statement of a few weeks ago was that IDTI expected to produce that quantity over the next year or so. Big claims coming from a company that has not yet shown it can live up to its promises. If those statements prove out, then IDTI has a very bright future. If not, then investors should remember that only true IDioTs would expect anything other than very aggressive pricing and marketing to take place for WinChip products. If management can't deliver at least a fair performance over the next six to nine months in ramping the WinChip at competitive speed grades, then these guys are not the best ones to be running the company. If you can't compete, then get out of the business - it's too costly to just piddle with it. And don't waste stock holders money chasing after something you repeatedly fail to deliver on. My thinking may be extreme, but come this fall management just will have no excuse such as "prices are lower than we expected and by the time we had parts out the door the market had moved on to higher speed grades". It's time for IDT management to put up or shut up.

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