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Technology Stocks : IDTI - an IC Play on Growth Markets -- Ignore unavailable to you. Want to Upgrade?

To: Jim Oravetz who wrote (10655)	1/5/2000 8:40:00 AM
From: Jim Oravetz	Read Replies (1) \| Respond to of 11555

Re:Clear Logic. From the '99 annual report Note 11 Related Party Transactions The Company holds an equity interest of approximately 17% in Quantum Effect Design Inc. ("QED"). A stockholder and director of the Company also holds an equity interest of approximately 2% in QED. The Company's share of losses in QED was $1.1 million and $0.2 million in fiscal 1998 and 1997, respectively; these amounts are reported as interest income and other in the Consolidated Statements of Operations. The Company paid royalty expenses of $3.1 million, $3.2 million and $2.6 million to QED in fiscal 1999, 1998 and 1997 respectively. The Company holds an equity interest of approximately 34% (87% on an as converted basis) in Clear Logic, Inc., a corporation founded by a former IDT executive officer. The Company's share of losses in Clear Logic was $11.1 million, $4.9 million, and $1.4 million in fiscal 1999, 1998 and 1997, respectively; these amounts are reported as interest income and other in the Consolidated Statements of Operations. The Company increased its investment by $6.0 million and $12.1 million in fiscal 1999 and fiscal 1998, respectively. During fiscal 1999, the Company also extended a secured loan to Clear Logic in the amount of $3.0 million, of which $2.6 million was outstanding at the end of fiscal 1999. Jim