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

To: Hippieslayer who wrote (6192)	1/30/1998 7:33:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

IDT has been saying for some time that cL will not contribute significantly to earnings this year. They will probably do between $10 and $20 million in sales for the entire year. With start-up costs, that will conribute more expenses than profits to the bottom line for a while. Lehman has reasonable expectation for sales of the C6. Projecting anything higher than what they suggest is unrealistic. At least through to the middle of next quarter IDTI will be capacity contrained and they will not get much production out of hte Oregon fab until toward the end of the quarter. This is not saying that anything is wrong or off tract - this fits entirely with what IDTI has been saying recently. They are producing in the tens of thousands of parts per month now and plan to ramp to over 100,000 by the end of the quarter. In the meantime, IDTI will need to spend about $120 million over the next few quarters to ramp up production capacity in the Oregon facility. That will wipe out a lot of the profit from the C6 ramp for the close-in quarters. Toward the end of the year the C6 can be expected to start contributing significantly to earnings. The prospects for growth look truly excellent, but IDTI still has to deal with a lot of sharks in the water before they make it to the island of paradise (large profits).