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Technology Stocks
ISDI - A voice to be heard?
An SI Board Since May 1996
Posts SubjectMarks Bans Symbol
54 0 0 ISDI
Emcee:  Eric Hong Type:  Unmoderated
A. Backgound:

Information Storage Devices, Inc. (ISDI) designs, develops and markets IC for solid-state voice recording and playback using its proprietary ChipCorder Multilevel storage technology in the communications, consumer and industrial markets.

It only has one kind of product - high-quality voice reproduction, low-power and battery-less audio chips. The ISDI technology, based on a unique multilevel storage approach, stores multiple voltage levels into previously binary, two level EEPROM memory cells. Unlike traditional voice solutions whereby voice is digitized, the ISD approach stores analog signals directly into single cells as one of over 250 levels. This direct storage approach provides an approximate 8:1 advantage over the alternative digitized signal storage technologies, which, with only two levels (1 and 0) would require eight cells to store the same information. Additionally, the need for external A/D and D/A circuits is eliminated, enabling a truly single-chip voice solution. Because the signals are stored in EEPROM memory, the ISD devices offer zero-power message storage, which allows messages to be retained for 100 years without power or battery back-up and rerecord over 100,000 times.

Currently they offer chips that can store upto 10, 20, 75 and 90 seconds of voice record and playback durations and in the future they will offer longer-duration chips. However, you can cascade multiple chips for longer durations.

Example of current products that use ISDI's chips are:
1. Telephone ansering devices for Sony, Sanyo, Pioneer, GE and Asahi/PhoneMate to name a few.
2. Casio's and Toshiba's personal handy phones.
3. Swissphone's new pagers and Grundig's music telephones.
4. Answering machine in the MOT's MircoTAC Elite cellphone and personal message pad in Panasonic's GSM cellphone.
5. Polaroid's OneStep Talking Camara.
6. YakBak - children's packet recorder - one of the hotest selling items last Christmas.
7. Braun's Travel Alarm Clock.
8. Panasonic's car audio system and other industrial waring signs.
9. Voice It Technologies' credit-card size tapeless pocket recorders.
10. Classco's "VOICE ANNOUNCE" Caller ID.
11. Japanese Ministry of Post and Telecommunications (JMPT) offers user-recordable greeting cards enabled by ISD's ChipCorder chip.

Their chips only needs power, some decoding interface and a speaker to make it work. The applications are numerous.

B. Analysis:

Fundamentals -

Positives:

1. Patented technologies with no comparable competitors that can compete with its technologies.
2. Huge market potential with numerous applicaitons - value-line projected 6 Billion audio specialty market by the year 2000 and ISDI can grap substantial parts of it.
3. Currently it is trading at around $10 1/2 with book value around 7.00/shares.
4. Recommanded by the value-line last year at $21.00 in its special situation report with projected $65.00 price by 1998.
5. Zacks investment report projected the growth for next five years will be 30% and current P/E is around 15 (w/o the invertory writeoff - see text below)
6. Recommanded by US Investment Report newsletter this February as a buy because of it's undervalued.

Negatives:

1. Not enough foundry to fill customer demands but the situation is alleviating with more foundry on-line.
2. Last quarter orders slowed down along with rest of the semi industries. I believe that this situation will also pass in a quarter or two.
3. Last quarter they experienced some manufacturing failures when converting from 1.2 micron process to 0.8 micron process which incurred inventory writeoff that impacted the bottom line and resulted a .19c/share loss vs. 14c/share earings same quarter last year. The problem have since been fixed. Production of 0.8 micron wafer will be back on line in full strength in the 2nd Q of this year.
4. Complaint in court by ATML - One of ISDI's foundry is Samsung and Samsung licenses some of the ATML's chip processing technologies to manufacture ISDI's ChipCorder prducts. ATML claimed that ISDI infringed upon its patent. ISDI has sinced consulted with its patent counsel and found ATML's claim without merit. In 1/96, ATML filed a patent infringement complaint against ISDI and seeked to be the co-owner of ISDI's ChipCorder products. According to the management, ISDI have confidence that ATML's complaint is w/o any merit.

Technicals -

Its MCAD price momentum indicator and TSV volume indicator have just turned positive in the pass 2 weeks - Buyers have the upper hands now.

Summary:

I believe this stock is undervalued because its recent problems and has created a buying oppertunity. In 6-9 month, this stock will be over $20 and the long-term looks even brighter.

Any thought on this stock?

Eric

P.S. Their WEB page - isd.com. Check their products out.
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Go to reply# or date (mm/dd/yy):
ReplyMessage PreviewFromRecsPosted
54 Bought out at $ 7.50 The cash just now showed up in my brokerage account. Andrairden-1/15/1999
53 Where is everybody on this thread? Nobody ever bothered with the rumors of a seTaro-10/19/1998
52 Hi John, you better check out new Bay Area (where else?)start-up Invox: As farTaro-7/27/1998
51 Winbond offer to buyout at $8.25. Another party offer bid too but ISD didn'Si_Detective-7/24/1998
50 Garry, we may need a bit more patient with this stock. With current negative eEric Hong-11/6/1997
49 Might be that most of ISDI's customers to date make cellular phones using tSleeperz-11/4/1997
48 Any idea why this stock is not on the rebound with the other techstocks? Even tGarryP-11/4/1997
47 Oops, it's worse than I thought! (eom)Ben Geh-10/20/1997
46 Short-term technicals doesn't look too good...it has just broken the $10 suBen Geh-10/12/1997
45 Wake up and smell the concrete folks! ISDI is a DOG. They screwd the analystsSniper-10/10/1997
44 Still holding long here. Won't guess at short term reaction to missing thrairden-10/10/1997
43 Reported earnings after the bell. Revenues look good sequentially and year oveRon Wilhoit-10/9/1997
42 11.25 now. Yes it saw the high 12's three weeks ago when the market was hrairden-8/19/1997
41 To All, Sold my ISDI shares today at $10.75. Best of Luck to All! CaryCary Salsberg-7/15/1997
40 The market is forward-looking; IMO the new design wins were most significant. Ron Mitchell-7/14/1997
39 Eric, 1. Earnings were better than the analyst expected. 2. Sales increasedCary Salsberg-7/14/1997
38 Ron, I am missing something here, company earnings are worst than last year andEric Rojas-7/14/1997
37 ISD announces second quarter results: revenues of $11.4 million and loss of 9Ron Mitchell-7/11/1997
36 Nice move to 7.5 today. Hope there are future significant price moves in this rairden-7/10/1997
35 NEWS: ISD opens new design center in Israel............. biz.yahoo.comRon Mitchell-6/23/1997
34 Nice move to 7 today. Better volume than normal. Who's buying? Nothing newrairden-4/30/1997
33 Digi-Key "New in this issue." The ISDI product line is offered in trairden-3/21/1997
32 An incentive for patience: the almost $6 per share in cash ISDI is sitting on, Kapusta Kid-1/31/1997
31 I'm still holding--added more at $6.50 a few months ago. IMHO, there'sRon Mitchell-1/21/1997
30 Tony, Long-term prospect for this stock is excellent. With its recent design Eric Hong-1/21/1997
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