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

To: tom jones who wrote (8274)	5/8/1998 1:48:00 AM
From: Gordon Quickstad	Respond to of 11555

IDTI's margins are bad because SRAM prices are bad. IDTI would be nuts to have a great chip like the C6+ and not have the ability to pump out the numbers they hope to produce. There is a great risk in building up the internal capacity to meet anticipated demand. Sure their margins are decreased by using outside fabs, but they're doing it on a higher margined part, so they have room to work with on the margin numbers. Also, the IBM connection is a big plus for marketing the chip. IDTI is making the best decision on this for everyone concerned (except Intel).