AMTX's business plans do seem a bit murky to me also. I too have invested in AMTX because of the "revolutionary technology".
Thoughts of defending patent infringement suits and the lost time and money is a bit frightening. Licensing income, as has been said before, is only intended to fund R&D. So these oft discussed future lawsuits do not appear to be a significant portion of the bottom line.
Real income will come from manufactured items. As I understand from recent posts, AMTX plans is to manufacture for OEM's. I assume they will also sell under their own name. By the way, will AMTX manufacture modems/multiplexors for Alcatel or just license the technology?
I am concerned with total reliance on a DMT-only modem/multiplexor strategy. Sure, DMT appears to be the bee's knees. But why don't they opt for the entire bee and really fly. Again, it is my opinion that the other flavors of xDSL will be around for our lifetime. It seems like prostitution to some DMT-only fans but prostitution is the oldest profession. It is my impression from a quote by John Cioffa that he is not philosophically opposed to a strategy encompassing other flavors of xDSL. USRX and others are commiting to this strategy. If someone on this thread can give cogent reasons, not just feelings, why a DMT-only strategy is a good buisness decision and not just risky buisness I'll listen. However, it is my feeling that Amati will (based on Cioffa's quote) or will be forced to adopt other xDSL strategies in their products.
Regardless of strategies chosen, Amati has been hamstrung by chip supplies from Motorola. I do think they are a bit peeved at Motorola by the way. I don't think the Motorola chip is capable of a multi-xDSL strategy...I don't really know though. Perhaps, TI's chip will be able to provide this capability. How long will it take AMTX to design and manufacture modems/multiplexors with the new TI chip? How much market share will be lost in the mean time?
Anyway, a well enunciated plan(s) of action by AMTX (hopefully not by their PR dept) for the coming year and beyond would be appreciated by shareholders. As you said Amadeo perhaps they are at the mercy of the big boys and don't have much control or will for their destiny.
Mike |
