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Technology Stocks : Spyglass
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To: Art Bechhoefer who wrote (1128)10/21/1999 7:49:00 PM
From: Shtirlitz  Read Replies (1) of 1412
 
In my last conversation with Spyglass IR person I specificaly asked the question about royalties.
Spyglass will receive royalties, based on the number of units sold.
The ammount differs from contract to contract and is usualy between 1 to 10 dollars per unit.
They didn't want to disclose the exact amount of every contract. However, most of their contracts have royalties. This is in addition to licensing and support fees.
Royalties will be paid to Spyglass after the units will be sold. And most of them are still in the stage of production.

Current concensus estimates are 150 million units of internet enabled appliances will be sold by 2002. (IMO this is an understatement. This market will be growing faster.)

In any case, most of the Spyglass customers will produce and sell merchadize in high volume (Sony, Motorola, Toshiba, Nokia, ...).

Considering the fact that royalties are pure income, and will very positively impact profit margins, I would expect SPYG to do pretty well.
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