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Technology Stocks : INVX Innovex Comdex Winner !! -- Ignore unavailable to you. Want to Upgrade?

To: Box-By-The-Riviera™ who wrote (2560)	6/23/1998 4:42:00 PM
From: Kurthend	Read Replies (1) \| Respond to of 3029

JOEL, TOM, AND MARK, Found this on the Yahoo INVX thread. Believe it or not, the Yahoo INVX thread is extremely informative (unlike other Yahoo threads). The individual mentioned something about a possible lawsuit/litigation against INVX by HTCH concerning the 5 engineers that left HTCH for INVX to make pre-bonded HIF. Hope you all find this interesting. Kurt >>>>>>>>>I spoke with D. Keller last week and hutch today. Last week when Keller called, I was on the way out of the door, so I had time for only a few questions. Here's the info I got- INVX remains flat in sales of HIF- about .75 to 1 million per week. Their prebonded HIF to a suspension is coming along well, and will be sent out for evaluation to customers in the next month. It will likely take six months for evaluation returns, and another 2 months for ramping. 8-9 months to market. They are currently having NO problems with the technology. Next, they expect current sales of HIF to gradually grow this quarter, but weakness in the industry continues to keep earnings down. They are developing a new product for the flex chip business (didn't have time to ask) but it will be coming out soon- they expect gradual growth over the next few quarters. I then spoke to Hutch. 2.5 million units of TSA per week. They are still unable to meet demand of about 3.5 million per week. Seagate did approach Hutch about TSA, but Hutch was unable to offer them TSA because of a lack of ability to produce it. Hutch is selling TSA for $2.10 with a target price of $1.80 by the end of the year. It costs them currently about $3.00 to make but with improved effieciencies, they expect to produce 4-6 million per week by the end of the year, selling them for a profit some time around September, with a following profitable quarter. Hutch also said they believe they are producing the cutting edge technology, whereas INVX's prebonded product would have trouble with humidity, size, spacing, speed, etc. Also, Todd (Hutch PR) mentioned that the five engineers leaving Hutch was a sore spot, because those engineers helped develop the prebonded HIF to a suspension. He said that Hutch was currently in litigation with INVX to prevent this product coming to market. There was much more on this topic, but it came down to this. I asked if the prebonded HIF and suspension would hurt Hutch. "Yes, that's very significant, but there are all kinds of technological problems that INVX will run into in the production phase." My thoughts: INVX has claimed that their results from the the prebonded HIF and suspension are good. I believe them. Results from HIF have been great. In a year, TSA will still maintain a share of the market, but only in high end drives (if any). HIF +suspension will be the drive makers choice. Good luck to us longs, and for you shorties, keep the challenges coming.>>>>