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

To: Dale Knipschield who wrote (7875)	4/20/1998 10:25:00 AM
From: Rob S.	Read Replies (2) \| Respond to of 11555

The outlook is for IDTI to have earnings within the street estimates of 3c-4c. Asia isn't much of a concern because IDTI has on only a small part of their sales there. Although sales will be up so will the costs associated with the production ramp. I think we will see increasing momentum in sales as the C6 and C6+ ramp throughout the year. Clear Logic will not bring in any revenue to the bottom line for most of the year. CL should announce additional product families and sales that may reach the $15-$20 million run-rate by the end of the year but can be expected to use their income to support expansion for the next few years. The retained earnings and investment will add to the value of IDTI but won't happen as quickly as some investors imagine. However, IDTI is already trading at 21 times next years projected earnings, so, given what is now known about IDTI's plans and expectations for growth, a lot of the upside potential upside has already been taken. That makes the foreword looking statements of the conference call how well IDT is able to execute on their plans in an increasingly competitive (but expanding) environment very important in determining where the stock goes from here. Others have pointed out that IDTI is in a holding pattern waiting for earnings. I think that is right. I rate IDTI as a "strong hold" right now. Some good news on the production front or new plans for product introductions could easily spur the price higher. On the other hand, the market has been making a succession of new highs and IDTI has been in a holding pattern. I think it could be vulnerable if we get a general or high tech stock correction latter this year. I don't see the stock moving up past the high teens until late in the year or early next year.