Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Hippieslayer who wrote (7417)	3/17/1998 11:40:00 AM
From: Phaedrus	Read Replies (2) \| Respond to of 11555

I thought this news to be very bullish for IDT. I would think they would have more credibility with top tier vendors and, as such, the probability of getting a contract with a major OEM has increased. Thoughts?

To: Hippieslayer who wrote (7417)	3/17/1998 12:41:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

Fugazi, I'm surprised that you are not estatic about the agreement. To answer some of your concerns about the direction IDTI is likely to take with the WinChip family, Brian said that IDT had been in talks with IBM and particularly liked their low voltage technology, something IDT's engineers said would be very useful in making uPs for low power applications, such as laptops, PDAs and internet appliances. Brian said that IDTI has had discussions with at least three major OEMs who have reviewed the C6 and IDT's product plans but that IDTI has had to turn down any initiatives to work with them because it would take all the capacity they expected to bring on line in IDT's own facilities. IDT's engineers visited and evaluated IBM's facilities and determined that the fit in manufacturing technologies was nearly perfect; something that plagues many companies who try to do outside fabrication of ICs (like AMD and Cyrix). IBM also reportedly liked what they saw in IDT's capabilities as well. I think this match will be proven to have been made in heaven. Glen Henry, an IBM Fellow, is very familiar with IBM's capabilities, people and culture. Two peas in a pod. Much remains to be seen in how well IDT and IBM executes on the agreement, but this is the best such agreement, by far, in the industry IMO. Small but highly focused and proven IDT has the opportunity to greatly leverage their squeaky clean reputation, advanced "core competencies", manufacturable designs and great industry relationships. Judging from the trading action, the institutions are not yet back into buying IDTI. I expect that to change as analysts evaluate the new situation and factor in it's effects on future growth. Sure it will not effect things much outside of the marketing area in the next two quarters, but it should greatly effect the outlook in late '98 and the next few years.