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Technology Stocks : Oak Technology (OAKT) -- Ignore unavailable to you. Want to Upgrade?

To: AreWeThereYet who wrote (3991)	4/8/1998 12:40:00 PM
From: Bonzo	Read Replies (1) \| Respond to of 4335

Hi aC. Some important facts regarding CD-R, CD-RW and DVD from an article I read. OAKT is very much into the CD-R and CD-RW markets. There is at least 2-3 years of revenue visibility (based on this article) from this format. Hopefully this will buy OAKT more time to be a niche player in the DVD market. Lets face it, how many of these companies really have good rev/earnings visibility past the year 2000? The market is just too dynamic. The Divx and DVD debate may also slow sales of the DVD player. Features from the article: "Although DVD also offers recordable functionality, at this point the price is too high to be competitive with CD-RW. Also, CD-R is the lowest common denominator for media exchange on the desktop (other than 1.44Mb floppy) making it a logical choice for now. Early upgrades of business PCs will lean toward CD-RW since media interchange and personal backup continue to be important applications and business DVD-ROM titles remain hard to come by. In 2001, worldwide CD-RW units will exceed 23.6 million, while DVD-Rec will struggle to reach 4.2 million." Worldwide Highlights -- The share of CD-ROM drives will erode gradually, from 84 percent in 1998 to 23 percent in 2001 -- CD-RW will capture 19 percent of the market in 2001 -- High quality full-screen video and graphics will fill the space provided by DVD -- DVD is still associated with entertainment and not business -- The small offices will experience 35 percent read/write penetration in the PC segment by 2001 Despite a continued array of impediments, DVD adoption will continue at a gradual pace and 2000 will be the last year CD shipments will exceed DVD. P.S. OFF TOPIC: aC how is are THQ doing :-)