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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Eric Nelson who wrote (2417)	4/21/1998 10:35:00 PM
From: Shane M	Read Replies (1) \| Respond to of 3029

Comments on INVX and HTCH CC: Here's some notes from the INVX conference call. Overall tone quite optimistic. Lower margins primarily volume related. They don't seem concerned with competitive pricing pressure saying pricing holding up well given demand. See demand on increase. Further acquisitions being sought out, but "no comment" on progress. Litchfield - extremely good progress. Strong customer interest in HIF and chip packaging. Comment that HIF very well accepted. Yields are up. Mentioned a lot of renewed interest in the HIF product. In this context they reiterated that competition is not a big concern for them right now and that prices holding up well. Innomedica sale will be "not very significant" to balance sheet. On order of $1 mil NAV. Mentioned that inventories at significant customers are much reduced, and that the industrywide inventory adjustment may have pretty much worked itself out. Wire volumes trending upwards. Was below 7 mil wires/wk most of the quarter. Order visibility is very short. Mix of business (I think revenues): 40% DD, 30% medical, 30% other (flex circuit). All segments growing. Would not break out HIF contributions, but expect to have capacity in place for 5 million units/wk at July/Aug. Reitereate at 20-30% price advantage of HIF over alternatives. Seagate Cheetah 9 and 18 gig only drives shipping with HIF. Indication is that HIF performs well. Expect "meaningful revenues" from Iconovex by EOY. Commented they feel they have the lowest cost and well positioned in chip packaging (flex). One of few in business that can do sufficiently high volume. Margins should be similar to rest of product line. In response to integrated suspension (like TSA): Feel HIF has advantages. Mentioned electrical performance issues that apparently other manufacturers have confirmed. HIF is apparently much easier to add component such as a premamp. Integrated suspensions will have more difficulty. I also listened to the HTCH call and INVX was mentioned. In conflict with INVX comments, HTCH seemed to say that Seagate was reevaluating its use of HIF. While HTCH is still having yield problems and losing money ($0.60/share) on TSA, they seemed positive wrt the future. Were shipping 1.6 million TSA per week at end of quarter, expected rampup to 4.5 mil/wk at EOY with no new programs. Commented that capacity, and not demand, was holding them back. It's curious to me that both HTCH and INVX feel things are going well and don't really see each other credible threats. Did anyone else have the same impression? Shane