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

To: Marc Phelan who wrote (4493)	10/29/1997 7:27:00 PM
From: Rob S.	Respond to of 11555

Thanks for the article. Computer Reseller News (http://www.crn.com) has an article in their latest issue about expectations for future industry growth. The large and mid-size business categories, which consumes the majority of PC and networking gear, will grow way ahead of last year for the next several quarters. This growth comes at a time in which price reducitons have stabilized and inventories are low. In fact, lead times are modestly pushing out form many ICs. IMO, these forecasts for growth only tell half of the story. The growth will be even greater in terms of units shipped. The combined sales of Intel and the DRAM memory manufacturers comprise a large percentage of the total ICs sold (I think it's around 45%-50%). With continued aprox. 20%-30% price cuts in Pentium MPUs and DRAM over the next six months, the 16%-20% sales increase will actualy equate to 25%-35% higher unit sales. That will be more profitable to IDTI because they will more easily fill the excess capacity in the Oregon FAB and prices on SRAM and IDTIs core products are expected to be relatively stable. when combined with new sales from the many new product entries, this may well shape up to create a large increase in business levels and profits. I know it's not the tone of this thread to "hype" IDT's prospects, but this looks very exciting to me.