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

To: Edward Leinbach who wrote (8140)	4/30/1998 6:54:00 PM
From: wmf	Read Replies (2) \| Respond to of 11555

Why is everybody so pessimistic here ? They just transitioned their Winchip production to Oregon. Production in the current quarter was miniscule: 100000 units. That is about 3 days worth of production of a regular fab !!. Let us see what they can do in Oregon if things go well. Die size currently is 85 mm2. So they should be able to fit about 350 to 380 chips onto the wafer. Let us assume they get 30% yield. 1 wafer then will give them about 100 good chips. Assume they can have 4000 wafer starts per week. Then they will be able to produce about 5 million devices per quarter. Assuming a selling price of about $50 this could translate into $250 million additional revenue per quarter. Then IDTI sales would go from about 600 million per year to about 1.6 million. Which should imply a market cap of about 3 billion as opposed to 1 billion right now and a share price of $36 as opposed to $12 right now. So that is the potential. Question of course is if the market is there and if technologically will be able to execute. Anyways, I am long IDTI.