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

To: Brian A. McGrath` who wrote (5720)	1/14/1998 7:12:00 PM
From: I. N. Vester	Respond to of 11555

Thanks Brian! did the call cover CL at all? Good to hear they we upbeat and positive. I just hope analysts also got some religion out of the call!!!

To: Brian A. McGrath` who wrote (5720)	1/14/1998 7:15:00 PM
From: flickerful	Respond to of 11555

thanks, brian. <eom>

To: Brian A. McGrath` who wrote (5720)	1/14/1998 7:48:00 PM
From: Jin Chun	Read Replies (1) \| Respond to of 11555

Recap on Asian effect to IDTI: It's difficult to assess the longer-term implications of the Asian currency crisis on IDT's business... On the cost side, we're realizing significant savings due to currency devaluation in Malaysia and the Philippines, where more than 2,400 IDT employees perform assembly and test operations I am so glad that IDTI was able to meet the earning!! Jin

To: Brian A. McGrath` who wrote (5720)	1/14/1998 9:00:00 PM
From: Rob S.	Read Replies (2) \| Respond to of 11555

Brian - If I apologized for typos I'd have to do it on every post. Just got my power back on after an outage. At least the phones were working and I was able to listen to the conference call. I agree, it was the best, most enthusiastic conference call for at least the last two years. The results were good; better than I expected. Brian B. said that if it weren't for the cost of the C6 and CL product ramps and if you take out the benefit of a one-time tax carry-forward, the earnings would have been more like 8c-9c rather than 3c. Here are a few points but I'll keep it brief: - the ramp of the C6 is going well and yields on good and improving. The Oregon fab has just starting producing parts which have made it through testing. - the C6+ will be produced in Oregon. First silicon is out and is being tested, production is expected to start by the end of February (If I remeber right). It is being produced in both 0.35 and 0.25 simultaneously. If the 0.25 process needs more time to tweek they will have the stable 0.35 process to ramp quickly. - CL is not expected to contribute a lot of revenue for several months and will probably have sales of only around $20 million for '98. I think IDT doesn't want to make too many claims for what CL can deliver until at least they get the products onto the open market. Perham probably doesn't want to steal the thunder from CL management's discussions next Monday. - The oregon fab is running at about 10,000 wafer starts but has the capacity to ramp to about 80,000 eight inch wafers. The production cost per wafer has dropped by half and is expected to continue dropping as production ramps. Perham said that they are considering 2nd sourcing of production although no details were given out and analysts were profoundly mute in querrying further. I don't think they grocked this, but then, it would just be speculation at this point. - Perham said that the name of the game for '98 is to improve margins and concentrate on the major product initiatives already in place. He emphasized that the design approach taken by Glen Henry was truly brilliant (the best engineers recognize that true design brilliance is very, very, very rare - lots of guys/gals (ie, engineers at Intel, AMD, Cyrix) can build a BIGGER mouse trap, almost none can make a better one). There are many iterations of the C6 that will become posible that can take the elegant core processor and marry it with advanced memory, I/O, graphics engine, etc. to produce higher performance, lower cost designed systems = capitalizing on IDT's core competencies. I expected earnings to be significantly worse than street estimates due to ramp up costs and was very pleasantly surprised where they came in. The "story" is not in this quarters' earnings but in the outlook for the new products. The roadmap looks extremely positive. Some analysts may not have the technical experience or understanding to grok the differences between IDT's technical position on the C6, advanced memories, communications products, CL, etc. and discern that from the recent experience of companies such as AMD's K6. So it remains to be seen how some of the anals will digest the situation. There are some sharp analysts out there who have seen where IDTI is headed and will likely applaud the progress they are making. I think the stock will start moving up toward the 14-15 level by the end of this quarter as long as the Asian situation doesn't tank the entire market. The real move probably won't happen until some future rally in the high tech stocks toward the end of this year or early next. My 14 month target is 25-30.