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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: thomas hayden who wrote (4776)	10/31/1998 4:14:00 PM
From: DanZ	Read Replies (2) \| Respond to of 6565

Tom, There has been so much negative press reported on DIVX that I would guess VLSI investors have not discounted much, if any, earnings from that market. If for some reason the nay sayers are wrong and DIVX takes off, then I think it would be positive for the stock. VLSI makes the security chips for DIVX players and it is my understanding that these chips are high end as far as revenue. I have been told that VLSI's chips range from $5 to $25 a piece and that DIVX ASICs are at the upper end of the range. Since VLSI is the only source for these chips, the company could generate $15 to $20 million in revenue for every million players sold (just a guess). That's not too shabby so let's hope that DIVX does well. I'm still not convinced that DIVX will fail. DIVX and DVD players cost about the same and DIVX players play music CDs, DIVX movies, and DVD movies. Since DIVX players are more versatile than DVD players and the sound and video quality are just as good, I can't think of any reason to buy a DVD player over a DIVX player, even if I never used it for DIVX movies.