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

To: BigBull who wrote (9819)	11/4/1998 8:07:00 PM
From: Rob S.	Read Replies (1) \| Respond to of 11555

The trouble with MIPS extending their licensing beyond just the processor cores will be that it competes more directly with what their licensees have done: take the "core" and augment that with other things tailored to specific markets. Sure IDT can compete as well or better than anyone producing MIPS products and the new cores might help to expand the MIPS marketplace. But the way I read this announcement is that OEMs can now look to MIPS directly to license the parts to go into convertors and other aps. My first guess is that it either means little to IDT or is just a further sign that the MIPS business is a commodity business with numerous sources competing at very aggressive price points. For instance, the WebTV set-top boxes we got excited about in the past now is so far down in the dirt now that IDT said they might not want the business - that whoever got it wouldn't make much, if any, money on it. It's great to produce 100s of thousands of parts, but not if it costs you $6 to make them and they sell for $6.25.