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

To: Harold Engstrom who wrote (7307)	3/10/1998 3:47:00 PM
From: Xianming Liu	Read Replies (2) \| Respond to of 11555

Harold: << No one is buing IDT for its current earnings (or past earnings). Everyone who buys this company is looking at 3-4 quarters out and at the gradual ramp of earnings that will enthuse investors. I think revenues will probably top $300MM per quarter within a year. >> While I share some of your bullish views on IDTI. I think your projection of $300 M quarterly revenue in next few Qs is way too bullish. IDTI's revenue for Dec 97 Q was around $144 M. I remember management's guidance for revenue from CL is very modest (something like $10 M/Q at most for next few Qs). Your revenue projection would mean that $100M -$150M revenue would come from C6/C6+. If we assume that an average price of $80 for each C6/C6+ chip, it would suggest that IDTI will have to ship 1.3M -1.8M unit of quarterly C6/C6+ chip to achieve your revenue projection.