Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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 -- Ignore unavailable to you. Want to Upgrade?

To: LarryS who wrote (4342)	10/21/1997 10:40:00 AM
From: Rob S.	Read Replies (1) \| Respond to of 11555

Good find. Yea, IDT must first eat it's way up the food chain before taking on the big boys. One question I have about the C6, the 53 unique instruction extensions in addition to MMX, and something that there seems to be misunderstood by the trade press: Does having the 53 instructions Direct 3D enabled mean that programmers will only need to write to Direct 3D and not to the specific MPU instructions to take advantage of them? AMD and Cyrix will also have unique instructions in their next versions of Pentium Plus processors. It would be a major disconnect if every program had to be optimized for each MPU to take advantage of these instructions. A couple of trade & PC articles I've read indicate that this would be necessary but I doubt that is the case. Centaur's novel twist on future instruction-set additions will be the inclusion of 53 new X86 instructions, which will be sup- ported in future Direct3D application programming interface releases from Microsoft, Henry said. The instructions will speed geometry, lighting, and transform calculations for graphics processing. Sales in 1998 should be split about equally between the C6 and C6+, Henry said. About 1 million to 2 million units are expected to be sold. The target is to sell 1-2 million C6 and C6+ in '98. That is about what I figured was reasonable. That's roughly 1-2% of total X86 MPU sales. Figuring a mix of ASPs between $50 and $150 for the units and an average ASP of $90, we get an increase in IDT's sales of between $90 and $180 millions. Not bad for the first year of a new product entry. Considering that a large part of sales will be to 3rd tier accounts, the ASPs may be slightly higher than $90, but that should be a reasonable plug figure as we don't know precisely what will happen with pricing levels in the industry. If you add up what is expected in WebTV (750K to million parts over the next 12 months), ramps in other new products and add in the C6 family, and it looks like IDT's sales will grow substantially.