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

To: Doug Skrypek who wrote (8325)	5/13/1998 12:13:00 PM
From: Rob S.	Respond to of 11555

It will be difficult for IDT to educate the public at large given their relative size compared to Intel. Intel spends about one billion $ per year on ads and promos of their uPs - more than the total sales of IDTI. IDTI will have to take a different approach towards the market than Intel for some time to come. The problem remains being able to build enough parts - it would be great if they really had to worry about where to sell excess capacity. The last time I talked with Brian he said that IDTI would probably not have any difficulty selling a 250k to 500k parts per quarter. They have talked with a few potential OEMs who could each take around 250k parts per quarter. The competitive situation is always in flux but there should be a good chance that IDT can sell to at least one major OEM at that qty. once they get production ramped up. Absorbing 250k to 500k per quarter with major OEMs would use up a lot of the expected annual production, underwrite their fixed costs and provide the momentum to grow the second and third tier accounts where the parts can be sold for higher margins.