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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Richard H. who wrote (22346)	1/1/1998 7:34:00 PM
From: Investor A	Respond to of 33344

Richard, 1. How important is Cyrix Processor business to NSM? Without Cyrix and Cyrix x86 technology, NSM is just NSM, not an exciting or valuable investment to me. If NSM could expand the information appliance market to Brian Halla's target of 800 million units/year. Cyrix processors would generate 95% of NSM earning. 2. How much of a price advantage does Cyrix have over Intel after the recently announced INTC price cuts? Basicall, Intel is not a cost efficient IC manufacturer at all. The discussed cacheless PII is the best proof of my own observation. Intel claimed that their cost on 512K L2 cache is $20. The real cost should be less than $10. With the extra $10 L2 cache cost, Intel felt that it could not compete fairly with Cyrix/AMD in the sub-$1,000 PC market. With the crashed DRAM market, more fab are switching their DRAM to logic ICs. These fab are eager to secure business with tomorrow's major buyers, such as NSM, with BEST offers. Without the needs to spend 1 billion for an 8" fab or commit any costly contract, NSM is getting new fab capacities every month. Under this unbelievable conditiion, how could Intel compete with NSM in cost? 3. Where do you see PC industry being in 3 to 5 years? I would have the same forecast as Brian Halla that PC will be disappeared from our vision in 3 to 5 years. When NSM put all resources of system-in-the-chip ready and open the flood gate of the affordable PC/NetPC/NC/Infomation Appliances, the market would explode in the speed that very few of us could foresee at this moment. Car lets people run faster than horse. Airplane let us travel faster than any bird could fly. PC becomes another humum ability extension. It has become necessory for moderm world. When PC was $2,000 or even $1,000, people in China could not afford it. When the price of PC dropped to $200, every family in China would buy one so that their "only " child could study better. It would happen to India, Africa, South America or Middle East. Shareholders of NSM are simply lucky invest at the right time! Fuchi ... who loves Cyrix's innovations Please support the PC industry & protect consumer interest techstocks.com

To: Richard H. who wrote (22346)	1/1/1998 8:15:00 PM
From: Joe NYC	Read Replies (2) \| Respond to of 33344

Richard, 2. Positive press from George Gilder in his Technology Report Can you summarize here what Gilter said? 1. How important is Cyrix Processor business to NSM? Do you mean percentage of revenue or strategically? As a percentage of revenues, it is very modest, probably about 10% over the last year. But, looking in the future, it is the core of the system on a chip strategy. Other layers are gradually added, but Cyrix technology is a solid core. 2. How much of a price advantage does Cyrix have over Intel after the recently announced INTC price cuts? As you probably know, Cyrix has 2 family of chips. The mainstream - 6x86MX is doing only so-so. The cost is high, process technology is not cutting edge, the result is the writeoff we have seen. But things will turn around quickly, when .25u process comes on line - Q1 to Q2 98. It can make solid profit at .25u The second family is MediaGX shich is the first implementation of the system on a chip strategy, or to be more precise, system on 2 chips. This chip is the trend-setter of the sub-$1,000 PCs, which are hot. The second iteration of the MediaGX - MediaGXm will be introduced on January 14 in Compaq Presario 2240. The MediaGX is profitable and it is not affected by INTC price cuts. It was introduced last April, and the prices have not moved. It sells for between $60 and $100, while the speeds are increasing. The integration of Audio, Video, memory controller and equivalent of a motherboard chipset makes it immune from INTC price pressure. The integrated components are worth almost as much as the whole chip, so the CPU core is virtually free to the buyers. 3. Where do you see PC industry being in 3 to 5 years? I think in 2 years, the mainstream PC will be $500. Of that, Cyrix/NSM will collect $50 to $100. In 2H 98, Cyrix will start to sell the MXi. It is MediaGX on steroids. Faster core of the CPU, Double the memory throughput, faster 2D, newly added 3D (top of the line), DVD, MPEG all in one chip. Enough CPU prerformance to match the fastest chips (300-400 MHz) With die at 90mm^2, it should be probably even cheaper to produce than Deschutes. As far as I know, Intel doesn't have an answer for it. We don't know much about Intel's Katmai, but after seeing specs for MXi, maybe it went back to the drawing board. Cyrix defined new segment of the market, and with NSM, we have a window of opportuity in 98 to make this sement dominant and to be the dominant player in this segment. In 2 years, the integration of all non-memory components will be complete. The next thing to integrate is memory, and eventually, replace moving hard-disk with silicon equivalent. One possibility is that the PC will be a walkman size box (with CD / DVD being the bigest component) that will serve as both, your laptop and desktop. As a loptop, you slike it into a chasis with small and light flat panel and keyboard. As a desktop, you just attach a full size flat panel, full size keyboard, and you attach to the network. Or actually, you may not need to attach anything. It may all go over IR waves. But before we get there, we will see more of a bloodbath in 98. A $28B gorilla will not take it lightly when somone tries to walk away with it's lunch. Who will win? The aging Andy, or the young upstart Brian? I am betting on Brian Halla. Joe