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

To: flickerful who wrote (4658)	11/7/1997 1:46:00 PM
From: Donald B. Fuller	Read Replies (1) \| Respond to of 11555

>>snip...for all of its savvy engineering, there seems a distinctly unsophisticated quality to its "press opportunities". maybe comdex will be different, but it seems to me a creative pr team would be getting ALOT more bang for the buck; i can think of several, recent sector pieces in which idt should have figured prominently, let alone the commensurate covergae from the recent trade shows....snip>> One other teeny weeny little thing would help their share price even more. Its called earnings per share. Don

To: flickerful who wrote (4658)	11/7/1997 2:43:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

IDT has not had the recent demonstration of surprising analysts and investors to the upside. You can say that many investors are either skeptical or just waiting to see some results in higher sales and indications of earnings. Comdex may spur some interest in IDT but I expect little Centaur/IDT will be overshadowed by giant Intel, boisterous AMD (Sanders & Sons), and creative Cyrix/NSM. IDTI is still late for the game at this fall's Comdex. Unless they have unexpected news about a high ramp rate or more OEMs and re-sellers than generaly expected, the stock will probably stay in a trading range for the next month or two. If Comdex proves to be less than exciting for IDT, then I expect the next period that a break-out might occur will be as we get toward the end of this quarter and get some indications of how sales are going. This quarter other products besides the C6 are most important to sales. As stated by Perham during the recent conference call, the ramp up of the C6 may take a bite out of earnings this quarter as there will significant costs ahead of significant sales earnings. Over the next couple of quarters IDT will need to fill the pipeline of wafer and finished parts inventory. With the current picture of strong sales and pricing for SRAMs and other products and ramp ups in the WebTV, networking sector and other products, IDT should have a bit better than expected showing outside of the C6, IMO. Again that's why the yield situation on the C6 is so important: If IDT is able to ramp up production more quickly and cost effectively than it's competitors, the earnings impact will be much greater. This could also send a strong signal to OEMs who might consider using the parts that IDT will be able to quickly support high volume production needed for use in laptops and other applications. No OEM wants to tie up his production of laptops, which need to be tailored to the MPU, because they can't get parts. As troublesome and expensive as the Intel portable parts are, OEMs have come to rely on them to delier in vast quantity. I think the first major leg of a break out for IDT is likely to occur early in '98 unless realy significant news primes the pump sooner.