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Technology Stocks : Reliability Inc (REAL) -- Ignore unavailable to you. Want to Upgrade?

To: Christopher Brainard who wrote (488)	6/20/1998 4:00:00 AM
From: pt	Respond to of 542

Chris, no long-term investor should feel stupid for sticking with REAL.* From a trading perspective, riding it down from 30 was not a good idea for any of us. But the company is still a very good one with strong management. REAL will be back. When new PCs are shipping with NT Workstation 9.0, and its 8 Gigabyte minimum RAM requirement, ;) REAL will still be there providing the equipment and services to test the chips. IMO, of course. Which of REAL's major customers does the Singapore facility serve? I'm curious about the transition aspects of the TI-Micron deal. Will Micron just keep running the TI DRAM facility as is, or convert it to make Micron-spec memory instead of TI-spec memory? Wouldn't that be outlandishly expensive? And was TI a Service customer or a Products customer? That would seem to make a difference in how the sale will affect REAL. Paul *If you went to sleep for 20 years after buying REAL, would you be happy when you woke up? My guess is you would be very happy, and you wouldn't be all that concerned about the spike to 30 and collapse back to 8 that occurred while you were asleep.

To: Christopher Brainard who wrote (488)	6/20/1998 5:02:00 AM
From: pt	Respond to of 542

From the annual report: \| Revenues from major customers, as a percent of total revenues and \| industry segments, are as follows: Total Testing 1997 Revenues Products Services ---- -------- -------- -------- Customer A 32% -% 75% Customer B 29 58 - Customer C 19 38 - Customer D 10 - 24 Customer D must be Mitsubishi; the discussion of the North Carolina closing has mentioned that the NC facility provided 10% of REAL's revenues. So TI must be A, B, or C. If Micron does not use REAL for TI's DRAMS after they purchase that business, we could be looking at another 19%, 29%, or 32% loss of revenue. That would hurt. Paul