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

To: Lockhart who wrote (7945)	4/22/1998 5:55:00 PM
From: Daveyk	Read Replies (1) \| Respond to of 11555

Does anyone have access to after hours quotes?I suspect we'll be gapping down unfortunately. Regards,Dave

To: Lockhart who wrote (7945)	4/22/1998 6:27:00 PM
From: Rob S.	Respond to of 11555

Some other stuff (still listening); Expect mid single digit growth (down from previous expectations) for the next couple of quarters. Communications product sales into Asia have dropped significantly and are expected to remain weak for a few quarters. Margins on the WinChip are expected to be around 50% with an ASP of $60-$70 as speed grades ramp higher. Last qtr. ASP was $59-$62 and expected to be $54 to $56 this qtr. Most C6 parts should yield at 225 Mhz and higher and are going toward 240-266 Mhz in Sept. quarter. WinChip II is expected to ship at 240 to 300 Mhz. WinChip I (C6) may continue to be built for several qtrs. Because it runs at 5v, single supply. Overall gross margins were 37.5% this qtr and are expected to expand to around 40% by the end of the year. On a stand-alone basis the WinChip is not on a break-even basis. It is expected to be profitable in the 3rd qtr. Len said that he considers 70% wafer yields to be "good" and for that to be an achievable goal for the WinChip & WinChip II. He is "confident" that IDT will be able to produce between 2.5 and 4 million WinChip parts this year. WinChip II is running at both 0.35 and 0.25 micron. The cost of the die is expected to be less than the cost of packaging and testing (as I've commented on in previous posts). At "good" yields each wafer will yield around 290 good die. Since a wafer will cost less than $2,000 to produce, the cost per untested or packaged die will be less than $10. The packaging costs will be closer to $18 - These are my extrapolations. The call ended on a sour question from an analyst who was disappointed because he thought that IDTI had given guidance for higher earnings and had made statements that if anything out of line was expected that a pre-announcement would be issued. Len said he was sorry that the analyst misinterpreted the company's prior statements. He and Brian (whom I can vouch for) have been saying all along that earnings would be flat and expenses of the ramp and product-marketing transitions would constrict profits for this quarter. The earnings were at the low end of guidance but within the expected numbers. As other companies have recently pointed out, pricing pressures and the Asian drop have marginally effected business greater than normal. I think the company was very straightforward with me and did not build up expectations unrealistically. My guess is that the stock will probably trend down over the next several days. Time to sell calls against the positions you want to hold onto, sell off part of your positions, buy some puts, or just be patient and sit tight.

To: Lockhart who wrote (7945)	4/23/1998 8:30:00 PM
From: Nick	Read Replies (1) \| Respond to of 11555

Thread: Well IDTI took A 1 3/4 bath not the sort of reaction to fundamentals I'd hoped for. Or, I should say, not the sort of fundamentals I'd hoped we'd be hearing. The reasction was predictable. Thought sure since no fore warning they'd make their numbers. On the positve side, it seems this may be support level. Also, new year with new product mix and bad news is out. If they can go forward with some good numbers maybe we will have a payday yet with this one. Im still long but my patience is wearing thin with average cost $12.24 (and Ive been to 16+ twice!!!!) 1 or 2 more qtrs is all Ive got left in me. Maybee I should sell covered calls and let fate decide. Best wishes to all IDTI diehards. Solong Bigbull, I know how you feel. Nick