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Revision History For: INTERPHASE(INPH): Good future for this stock

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Return to INTERPHASE(INPH): Good future for this stock

INTERPHASE (NASDQ INPH) is one of the leaders of PC adapters in the field of Network and telecommunication (ATM, ISDN, 100 base T, FDDI) and storage cards (Fiber channel adapters). iphase.com

This company sells its products to major Computer manufacturers (IBM, Hewlet Packard,..) She also signed a partnership with Cisco. It has a strong technology based on the development of NIC cards fitted with home developped ASICs.

In july, Interphase bought the French company Synaptel, a $12 Million company. Synaptel is the french leader for ISDN remote access cards. Synaptel's key customers are IBM, BULL, ANIXTER, FRANCE TELECOM, TELEFONICA, ... and french Key account Customers (Banks and Insurance). synaptel.com

With this acquisition INTERPHASE gets a strong ISDN offer (certified in most European countries, Japan and USA), and the opportunity to sell to its US key customers. It also gets the very good software development knowledge of Synaptel in the field of drivers and protocols (WIndows 95, Windows NT, OS/2, UNIX drivers, DLSw, PPP, X25, Frame Relay, SNA protocols).

The sales strategy of Interphase+Synaptel is very good (OEM sales + indirect channels), the technology is strong. The demand of these products is still growing (for ATM, ISDN and Fiber Channel).

The company Market value is $70 M, for about a 60 $M revenue (including Synaptel). This is not a big ratio comparing with competitors. The biggest that i know are :

EICON : Canada (EIC at Montreal stock exchange)
ITK (ISDN and ATM) not public
AVM (ISDN) not p–blic
DIGI (NASD: DGII for ISDN adapters)
ISDN*Tek (USA) not public

Last quarter, results were bad (Income : -11 Million) , because of an exceptional charge due to Synaptel Acquisition ($8 Million Cash + 560 000 shares).

INTERPHASE is an undiscovered stock. Normal days trades less than
10 000 shares . (5 Million outstanding shares).

I think that this situation will change as soon as the Market discover INPH (perhaps at the end of this quarter, if positive results)!!.

This is not a recommendation to buy. Just an opinion.