nsil...
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Internet Stock Watch Oct 6 1999 3:00PM CST
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Net Silicon: Using Standards to Network
Embedded Systems
by Chris Connor
Business
NETsilicon {NSIL} manufactures chips and
software that enable embedded systems to
communicate over standards-based networks and
the Internet. The imaging equipment industry
represents the company's biggest customer base
so far. NETsilicon's products are embedded in
such devices as printers, scanners, fax
machines, and copiers.
Huge Potential Market
NETsilicon's technology is designed for broad
applicability so that it may be incorporated into
virtually any electrical device. The market for
embedded networking systems has developed as
a result of the recent convergence in networking
technology on standard transmission protocols
such as the Internet and Ethernet. This makes it
possible for electrical devices to communicate
with other standards-based equipment, which
enables the free exchange of information,
distributed processing, and remote maintenance
and processing. Furthermore, making products
based on a standard makes it possible for third
party software developers to readily design new
products for use in the company's NET+
equipped devices. Consequently, end-user
demand should be higher for NET+ equipped,
standards-based products than for comparable
products not based on standard transmission
protocols.
Growing Rapidly
Net sales rocketed to $13.3 million from $5.4
million over the six month period ended 7/31/99.
For the last twelve months, sales have grown 162
%. The growth in sales has been generated by
the company adding a significant number of
Original Equipment Manufacturer (OEM)
customers such as Minolta, NEC {NIPNY},
Ricoh, and Xerox {XRX}.
Risks
This company has only been public since
September 15, so it has little information available
about it. For example, no brokerage has covered
the stock yet because it is still in its quiet period
until October 11.
Investment Summary
NETsilicon could provide investors with a ground
floor investment opportunity in the huge potential
of network-enabled embedded devices. In the
short term, this stock could see significant
upside when its quiet period ends on October 11
and brokerages are able to initiate coverage of the
stock. Over the longer term, the stock should
provide superior returns to investors.
Disclaimer: This report is published solely for informational
purposes and is not to be construed as advice or a
recommendation to buy or sell a security. Trading involves
risk, including possible loss of principal and other losses.
Your trading results may vary. No representations are being
made that utilizing techniques mentioned in this article will
result in or guarantee profits in trading. Past performance is
no indication of future results.
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