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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Mark Oliver who wrote (1864)	12/12/1997 8:51:00 AM
From: Box-By-The-Riviera™	Read Replies (1) \| Respond to of 3029

Indeed, and if I'm wrong....there will be plenty of shares to give away.... trust me. Will you take INVX shares in payment????????? BTW my email hasn't been working for days...... Joel

To: Mark Oliver who wrote (1864)	12/17/1997 7:08:00 PM
From: Kurthend	Respond to of 3029

Mark, I just got off the phone with D. Keller (CFO INVX) and this is the information I received (Remember all of my previous disclaimers, it still applies). Doug Keller returned my 2 calls twice before I finally spoke to him. He was very open, forth coming, and cordial. It is refreshing to have a company that seems to care about its stockholders. I didn't have my questions in front of me when I spoke to Doug, so inevitably I forgot to ask him some basic questions such as Asia and other obvious questions. Anyway, here are some notes: BAD NEWS FIRST: 1. The article about Haley that I sent you all about a week ago is basically correct, but that to Haley's (CEO) recollection this was an interview that occured in Jul/Aug of 97. Therefor the doubling of revenues was meant for FY97 over FY96. OTHER news: 1. Right now they feel comfortable with 48 cents for 1st qtr FY98. Oct was a good month, Nov was a bad month, and Dec is turning out to be a medium month. My notes-- last year they earned 44 cents in the first qtr. 2. Analysts are expecting 52 cents for the 2nd qtr and Doug felt comfortable with this estimate. He said that there are a lot of orders already for the 2nd qtr and that they expect more orders as the qtr progresses. They expect to have some lump costs in the 2nd qtr due to the new facility being open. The LPC facility is still scheduled to open in Jan. Also the regular costs with depreciation/ammortization, etc will start taking place in this qtr due to the new facility. They expect a ramp of approximately 200,000 HIF units a week and will increase that to 2 million by the end of Jun. He told me that it takes time to ramp up to full capacity but that they feel they can satisfy the demands of any and all customers. They are still comfortable with I believe 5 million/wk in the latter half of calendar year 98 and 10 million in Jan 99. My notes-- last year they earned 66 cents in the 2nd qtr. 3. The problem arose in the HDD industry due to an oversupply and not necessarily a drop in demand. The HDD industry built too many HDDs earlier in the year and everyone is still suffering. I am not sure if I got this right or not, but Doug also mentioned a problem due to DELL. Apparently DELL created a shortening of the distribution channel and this caused a problem in the regular distribution within the HDD industry (I'm sorry but I can't recall exactly how this affected INVX or the other component makers). Doug also said to keep an eye on the demand figures for hdd units for a reference in determining their production (one of the 2 sources he recommended was Trend Focus). 4. They expect to ramp up in "volume" in Jan for the Cheetah drives. There is a lot of interest for their HIF but that companies have not committed at this point in time. I believe that Doug also said that he is not aware of any HDD companies committing to HTCH's TSA. 5. RE: flip chips--To the best of his knowledge only 3M and IBM can produce the sub 2 mil tolerances (INVX is the 3rd company). IBM mainly builds for themselves and that leaves only 3M. INVX believes there will/is a very big market in the flip chip technology sector. INVX wants the high end of the market. Doug said there is already one application and that by the end of FY98 (late summer) they anticipate a lot more demand in the flip chip arena. That is basically what Doug said during our conversation. I am sure I left out a point or two so don't hold my feet to the fire. Personally I believe that INVX has held up well due to low costs and their continued transition to MR.