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

To: Hippieslayer who wrote (6214)	2/1/1998 2:08:00 PM
From: Rob S.	Read Replies (3) \| Respond to of 11555

The great news that has developed over the past few months is that OEMs and end customers are very willing to buy alternative Pentium class parts. AMD said last week that they are having to turn away tons of new business and cannot supply all the parts that Compaq and others want. Likewise, IDTI/Centaur have been severely capacity contrained. It's great to get rave reviews and hear that customers want your parts but that gets wasted if you can only make a few tens of thousands - a quantity that hardly matters as far as gaining overal market momentum and first and second tier product endoresements. Another significant piece of news is that IDTI says that they are not having more than the expected yield issues in mfg the 88 sq mm, 4-metal layer C6. That is very important because if they had similar problems as AMD, the production ramp would stall. For the next few quarters IDTI has yet to prove itself as a volume mfg. of complex uPs. The product has such a great amount of leverage for such a relatively small company that if they are highly successful in ramping the C6 and come out with the C6+ and other iterations in the time frame they have planned, then the earningsw will grow faster than is currently forecast. However, if IDTI stumbles or the capx expenditures prove to take longer and are more costly than expected, the market opportunity could eaily pass them by and leave the facilities and ramp-up investment wasted. This is going to be a true test of how well managed IDTI is, both in terms of their long-range vision and in terms of the execution. We are still at the point were the plee is "Show me the money!".