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Technology Stocks : Flextronics International (FLEX) -- Ignore unavailable to you. Want to Upgrade?

To: 18acastra who wrote (447)	12/18/1997 11:54:00 AM
From: rich evans	Respond to of 1422

I don't understand why flexf would do this. It seems more natural for a company like HDCO which makes the boards and has a substantial imbedded capitance/resistance program underway in their board fabs. I own AVX and asked how such products/ programs would effect their discrete business? They didn't seem concerned but it sure makes me wonder? Anyway it seems like FLEXF is getting into a different area then assembly. Paul? Rich

To: 18acastra who wrote (447)	12/18/1997 12:30:00 PM
From: kolo55	Read Replies (1) \| Respond to of 1422

I think they are trying to get something from nChip purchase. Marks has already admitted that they overpaid for nChip, they sold the nChip board fab recently, and I think Marks has realized that he doesn't want to invest a lot of money developing these new products. So he has done the smart thing and teamed up with Dow. I suspect Flextronics is mostly contributing the technology and people to this effort, with only some monies, Dow will contribute some manufacturing expertise, and the lion share of the monies. This strategy does fit with Flextronics business model, where they are trying to become the ECM expert on miniature electronic devices. by embedding resistors, and capacitors and such, into the boards, it could be possible to make some very small electronic devices. But of course the new company will have to go after the whole market, because Flextronics itself will only be a fraction of the market. Bottom line, I expect we see some expensive engineering talent costs leave Flextronics income statement and move to the new company's statement. So we should see a positive impact on G&A or R&D. I wonder though whether there will be a write-off? I don't think so, but we might. I'd need more time to analyze this in detail, but this is my first pass at it. Paul