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Technology Stocks : DII Group, Inc. -- Ignore unavailable to you. Want to Upgrade?

To: jeffbas who wrote (1585)	4/6/1998 11:29:00 AM
From: Nevin S.	Respond to of 1845

Haven't had a chance to analyze your comments fully but they are probably true. Competition has been heating up for some time in the gate array business and the 4" wafer fab just didn't cut it. For DII, however, Orbit only represent approx. 10% of their revenues in any given quarter, so I don't think many analysts will perceive this to be a major detriment going forward. That being said, you still have to wonder about management when they buy a questionable company like Orbit.

To: jeffbas who wrote (1585)	4/6/1998 11:55:00 AM
From: rich evans	Read Replies (1) \| Respond to of 1845

Yikes, DIIG is hitting a brick wall and the graffitti on it says ORBIT. They Paid 3.6 million shares presplit for this company which at the time in August 1966 was worth $12 a share which equals about 44 million and today the orbit shareholders have 7.2 million shares at $20 worth 145 million I figure. Diig then took a non recurring charges associated with the merger of 16.5 million according to their 10K. What did they get: an old fab with a few customers ( 60 million annual sales). The 4" fab had 1.2 micron cabability. So they then spent a lot of money to get a 6" fab at .6 micron. This was at a time when the industry was at 8" fabs and .35 micron and better. Now the industry is going to 12" fabs and down to .13 microns see: semi.org This is a good discussion on semi plans. Anyway now we have another 54 million writeoff which is basically the whole investment orginally and where do they go from here. They once again have an old tech 6" fab and as you pointed out have to outsource customer requirements. They can't keep up with the capital required to stay state of the art with the other SEmi-conductor ASIC companies IMO. This is a big problem in my opinion and could impact the company for awhile until they solve it. Would be interested in other opinions and what company can do.I am still long with my original shares but the puts I sold for October are looking like money in the bank for someone. Rich