>Any thoughts as to how the MARKET will react to this [MWAR bad qtr] news?
I have little faith in the current market's willingness to bother to make the proper interpretation that INTS and MWARs weaknesses might be caused by WINDs competitive strengths. Consequently, I have absolutely no idea how the market will treat WIND, but there is no question but that MWAR will get trounced once again. Perhaps MWAR should be looking for someone to take it out, along the lines that Microtec Research gave up the ghost soon after going public a couple of years ago.
There is a giant difference between WIND, INTS and MWAR that even the current stock market should be able to recognize. Very briefly, INTS got into trouble when it discovered that its acquired pSOS embedded systems technology needed a full toolset to remain both competitive and profitable in the long run. INTS had go on an acquisition binge to accomplish this quickly, suffering enormous cost and digestion problems as a result. It will take INTS at least 6 months to a year, or longer, to get this all straightened out, by which time they will have conceded important ground to WIND. INTS can only survive if they conceive a proper strategy and execute it to perfection, hoping to play an important second fiddle to WIND.
MWAR has a completely different problem. Being small and focused on their RTOS, rather than a complete toolset, demanded by the emerging embedded systems space, they properly targeted niche markets. The problem is that they saturated the niche markets they did well in, by winning over early-adopters, but failing to see those wins turn into huge infrastructure business. The other niche markets they attacked are beyond their ability to dominate. All this means MWAR cannot continue to build their business without depending on hitting the royalty jackpot - hence the talk once again delayed product shipments.
WINDs toolset is complete, supported by over 100 3rd party vendors, and has a broad-based business model encompassing many markets: telecommunications, networks, office automation, military, I2O, wireless, internet applicances, NC, digital cameras, automobile accessories e.g. navigation systems, etc. etc. etc. (By the way, I threw in digital cameras because in a previous post I indicated that WIND was not in any digital camera that I knew of. WRONG. I since learned that it is in a very major digital camera.) While many of WINDs markets are emerging, many are well into the solid infrastructure build-out phase that portends solid revenue advances now and in the future.
Allen |
