To: Gordon Quickstad who wrote (4849 ) 11/20/1997 11:04:00 PM From: Rob S. Read Replies (2) | Respond to of 11555
I haven't expected very much from the C6 other than a chance for IDT to get off the launch pad. I have been expecting it to take through this quarter just to start ramping production to 100s of thousands of parts. I think IDT should try to pump out as many C6s as they can; forget about selling them first, just ramp production as agressively as inhumanly posible. If they end up selling them for $50 each through an 800 number directly to end consumers or whatever it takes to clear the inventory, that's OK. The name of hte game is to ramp production in those shiny new fabs that are largely sitting idle and get some momentum going in the marketplace. IDT/Centaur's primary advantage is a much smaller die size and simplified manufacture than the competitors, so selling them at little better than break even makes sense to get yourself onto the playing field. Pump the C6 out of the production lines and shovel the stuff into the street. Heck, it will probably sell for something to the highway department as fill for pot holes. The strategy we have heard about, selling the C6 P200 for $125 just won't cut it. The field is already flooded with P200 MMX parts that sell at that price point. IDT/Centaur needs to take advantage of their main advantage, price competitiveness. Perham has said that he doesn't expect the C6 to have "significant" impact on this quarter's earnings, explaining that that meant 10% contribution to sales. I guess we we someday, hopefully in my lifetime, see some results from IDT. Sorry folks, just a wee bit frustrated by the lack of communications and the apparent missteps - if you don't hear what's going on, It's easy to you assume it's not up to par.