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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: Steve Porter who wrote (27289)	6/11/1998 11:58:00 PM
From: Robert G. Bianchi	Read Replies (1) \| Respond to of 33344

Steve & Everyone, My Summary of the Call: NSM Conference Call Next Quarter Conference Call: September 10th ú Bookings declined 20% from last year ú Bookings declined 22% from last quarter ú Capacity at 56% with full capacity 85% ú Tax Rate at 25% and continue next quarter ú Capital expenditures dropped to 108 Million in 4Q98 Brian Halla ú Update of PC Market (Midrange reducing inventories) ú Expect 70% of Market below $1000 ú National to offer Partnerships ú Celeron Product currently a miss ú M2 300MHz achieved 67% Yield on first lot out of Portland ú MediaGX Laptop has 21% Market Share in Laptop Market ú LAN Market (Lost key Socket) acquired ComCor for DSP Technology ú Wireless Inventory has been consumed ú Aggressive Move to 0.25 Micron Process for all processors ú New Fab in Portland ready to service market Don McCloud ú Order visibility is poor ú Analog Bookings up 20% from very poor quarter ú Cyrix Shipments up 10% from prior quarter ú Backlog is not in place as it should be ú August Revenue 500 Million +/- 10 Million ú Fab Capacity at 56% (end at 50%) ú Spending reductions in place ú Operating Loss at $0.42 per share for next quarter (maybe only $0.37) 1Q99 ú Cyrix Products will give us an Opportunity to increase sales ú Pulled-in Closure 0.65 Micron Fab to July ú November Quarter Loss 30 Million (2Q99) ú Capital Expenditure at 325M to 375M was 600M (8-inch Fab in Maine capacity cutback) ú R&D at Spending at 400M Question and Answer Session information ú Cyrix leading Integration effort, Intel must follow ú National has worked on acquiring all technology over last two years ú MediaGX Production Level and M2 Production Level ú Aggressive Pricing with Generic Socket 7 ú Intel can support market to $899 ú MediaGX and M2 capacity in place in Maine and starting ramping first week in July ú Capital Spending for 0.18 in place and continuing ú 10,000 Wafers Starts, can doupble current capacity of wafer starts ú 10% to 20% market share possible ú Expect new markets with information appliances ú Taped-out MXi be back in couple of weeks ú Sampling MXi in 4Q99 ú Plans for Slot 1 only if a partner wants it (Taiwan) ú Taiwan did not believe AMD, IBM, NSM and IDT could not ramp-up, 90% of Market is going to Slot 1 according to Taiwan ú Slot 1 offering Goal in next couple of quarters, (CPU needs to be redesigned for Slot 1 Bus) ú Breakeven Revenue NSM refused to answer question twice! ú NSM expecting to reduce cost by half (Cost was $56 to $60 in the Cyrix days) ú 573M in Cash ú Analog 40%, Communication 34%, PC Products 26% ú Costs with 6 Layer Metal lowest in the Industry for M2 and MediaGXm greatly increase speeds ú Stable weekly order rates now, few cancellations and little re-planning, order rate is still too low. Bob

To: Steve Porter who wrote (27289)	6/12/1998 12:02:00 AM
From: Donald Isenhower	Read Replies (1) \| Respond to of 33344

Steve, Another thanks for the summary. I intend to log off here and listen to the CC since maybe it will quell my queasy stomach I've been getting from all the other bad news today (ASML warning, diskdrive report that has no growth in 2001, etc.). I like the potential now in the simis to really do well over the next year or two, but being inexperienced I started moving to margin too soon! Didn't think NSM would move below $16 and didn't think ASYT would be below $15. So I now live in this juxstaposition of more and more high-tech stuff getting bought but watching the companies selling it to us getting killed. e.g., At my university we are already replacing Pentium 166s with faster machines so that we can run Microsoft NT (the older guys will not be used the 3-5 years previous machines were is my bet). This is being driving by students demanding adequate resourses and our support staff finding that the Windows 95 system just offers too much of a load to keep a couple thousand machines running. I expect to average 20-30 Gb on my two Sun Ultrasparcs by the end of the summer, and we are adding disks regularly to our other Pentium and Macs to make them more useful as servers (or to dual boot the machines with UNIX). Of course where this fool screwed up, was failing to add up how much was being sold to SEA. Now I wish I was up to estimating the growth potential in other countries where I have former students starting businesses that are growing and are in need of newer equipment. About half my holdings (NSM included) would have been able to be double to triple what they were if I had just believed the naysayers that any improvement wouldn' come this year and waited. :( Donald