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

To: Xianming Liu who wrote (7962)	4/22/1998 9:03:00 PM
From: Michael D. Christian	Read Replies (1) \| Respond to of 11555

To: Rob S. and Xianming Liu, does recent rebound by INTEL, CY, AMD offer any indications of this group for IDTI? If I look at recent bad news out of these (and VLSI), I think I see a common theme of a short dip followed by recovery due to optimism looking forward. Is the bigger concern internal issues (operating cost, market penetration, ability to deliver design and product) over the recent Asian market impact and PC slowdown? Your opinions please? With this said, do you think we will stay above 13 tomorrow with a recovery to 14.5+ by the end of the day due to long forward looking buyers? Buys late today at 14.5+ seem to be positive indicator?

To: Xianming Liu who wrote (7962)	4/22/1998 9:47:00 PM
From: Rob S.	Respond to of 11555

The uP speed race ain't as important as it used to be but is still a factor. You do have to scale to higher speeds to be able to get premium pricing. IDTI's #1 factor is still the ability to produce enough parts to meet existing market demand. Len said that they should have no problem selling all the parts they can produce for at least the next couple of quarters. They will be pumping out mostly 240 and 266 Mhz C6 parts by September quarter and will be producing a mix up to 300 Mhz of WinChip Is (C6) & IIs by the end of the year. Into the 4th qtr and next year the picture is more speculative. There are several power savings and cost advantages to the Winchip but it's hard to tell how this will shake out because of the lowering of prices by Intel, AMD and Cyrix. IDTI is working on a new version of the Winchip in addition to what has already been announced. Management said that they weren't going to discus this part until sometime latter. Len said that the performance would put it in the league with higher-end parts expected to be available around the time of its introduction but he would not elaborate. I think it best that IDTI does not disclose details of advanced parts looking forward, particularly if they have design features that substantially set them apart from the pack. Len said that Glen Henry will probably be the first to disclose the details at one of the uP design forums. On a somewhat brighter note: Although the ramp to revenue for CL has gone slower than anticipated, the outlook is good. Len said that new families of product are being aggressively worked on that will have a synergistic effect to help sell the existing line. The sampling of parts to some 45 OEMs is proceeding and production revenues are expected this quarter. It's typical to take up to several months for OEMs to evaluate new parts, no matter how great the savings might be. Sales for CL are expected to reach the $15-$18 million level this year - pretty well on tract with earlier expectations despite the easing out of the starting gates.