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May 3, 1994

CHIPS & TECHNOLOGIES PLAN MACINTOSH POWERPC ANNOUNCEMENTS

By CBR Staff Writer

Chips & Technologies Inc anticipates making announcements soon for Macintosh PowerPC products: it also said that it sees its revenue increasing sequentially in the next two quarters and its gross margin remaining constant in 1994 at 36% to 38%; it believes that it has reached the low point in its orders backlog and projects the backlog will climb in coming quarters to more normal levels; Chips is working to ease pressures on its margins by seeking to lower production costs and improve products, the aim being to enhance product performance while reducing product power consumption; within the past 12 months, the company’s customer base has shifted, in large part, to US companies; Chips used to derive 70% revenue from Pacific Rim companies, but now 60% comes from domestic companies, enabling it to interact with many of the computer industry’s larger producers; it sees opportunities in the industry’s move to the PCI interconnect standard from the VL standard but said VL would remain dominant through 1994.

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