Hello SI, thought I would check things out over here. Bobo, care to back up some of your claims?
Most of their IP is G.lite oriented, which limits any royalty.
Why do you say this? ADI, Lucent, Infineon, Intel and AMD all license Aware's full-rate DMT ADSL and G.Lite ADSL.
Other key patents have been awarded to TI/ Amati, Alcatel and others.
Amati/TI has been talking about their key patents since 1996. 4 years later and Aware, ADI and Alcatel have not paid a dime to Amati for any ADSL related patents.
Now lets look at royalty revenue. Agree that at first glance the 7% sequential growth in royalties does not look exceptional, but this is mainly due to slow sales of the WildWire in Q1 '00. You also can't base growth entirely on sequential growth. It's certainly worth noting that EPS were up 182% from the same quarter last year and royalties were up 266% from the year ago quarter.
That being said, more important is what Aware will report in Q3 & Q4, which will be based on their customer's Q2 & Q3. Get out a pencil Bobo and write this down. Aware's royalties will growth 25-30% sequentially Q2 to Q3 and 35-40% sequentially Q3 to Q4. You heard it here first.
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