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

To: Hippieslayer who wrote (8504)	5/26/1998 7:36:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

An article in Computer Reseller News reports that Glen Henry says that the WinChip II has as good of performance as the K6 3D but is 40% smaller in die size. That 40% smaller size should result in about half the number of rejects and substantially higher yields and number of die per wafer. If that is the case, then the only thing that should stand in IDT's way of selling a large number of them for significant profit will be the ability to crank them out. With both AMD and IDTI making parts both internally and at IBM, they should have roughly the same cost per wafer - probably IDTI has a lower cost due to AMD's wasted spending on design and acquistions. Since they will produce 40% more die and even more good die (if things go relatively well), IDTI will have substantially lower cost per part and should make money even if AMD sells the parts at break even. But I hear you; the company has been a perpetual disappointment as a high volume manufacturer. "Maybe next quarter" should be made into a recorded announcement that IDTI can just cue in rather than go through the trouble of repeating it in person each quarter at the conference calls. The stock price now reflects that IDTI has cried woof about great things that were just around the courner a few times too often and now investors are pretty well fed up - just the time for contrarians to buy.