I know that some of the promise for WIND is the annuity idea of making money as their customers ramp production, but IMO the current run rate of 20% of sales/so is about as good as it'll get. After all, WIND has been at this for a while, so if the biz model were going to yield higher returns on royalties it should have done it already. Probably the current strategy of selling more "stuff" per design win is the better way to go.
Umbro,
Don't mean to be personal, I will have to disagree with you again.
Today WRS is focusing on the high growth consumer/networking/server markets. Much of the new focuses are royalty driven. I2O, TMS, Auto computer, cell phone, printers, digital cameras, and last-mile boxes are meant to be high volume products. Besides the printer market, the others have not ramped up yet. Take the last-mile boxes for example, there were probably 4 or 5 million units sold last year. In 3 years, the number will increase at least 10 fold. Take a look at TMS, much of that market is only begin to move out of the R&D stage. An explosion in this market will happen, and I believe that we will see the effect by the end of this calendar year. Take cell phone as an example, if we get into the MSM5000 series chip, this will be HUGE. I can go on for a long time, but you see my point.
Regards, and I have enjoyed your company on this thread,
Khan |
