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Technology Stocks : Westell WSTL

WSTL 6.010

0.0%

Dec 18 4:00 PM EST

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To: Michael F. Donadio who wrote (20497)	9/21/2000 4:44:12 PM
From: Mark[ox5]	Read Replies (1) of 21342

ASP discussion Ok I found 2 pure plays in researching Corio (CRIO) & US Interworking (USIX) Corio is a recent IPO, Goldman Sachs based Market cap is $460 million and that is with IPO hype Revenue stream last Q which is all ASP was $10 million Compare to CPI division which of the $10 million last Q, I doubt much if any is ASP. Corio has started from basically zero revenue and is now at $10 million in the most recent quarter, much faster growing than CPI. 96.7% sequential revenue growth (3 months) versus 40% year over year for CPI. So that is 1 comparable trading at $9 Second comparable is US INterworking which at the top of the tech hype and pure play ASP was $71, now at $7 Market cap is $680 million It delivers Ariba, Broadvision, MSFT, Siebel (waiting on customer list from CPI) Revenue in most recent quarter was $26 million (2 and 1/2 times that of CPI) and it had 47% SEQUENTIAL growth compared to CPI 40% YEAR OVER YEAR growth. It has more revenue in past 6 months than CPI in a full year yet is valued at under $700 million. Also once again all of these 2 companies are the "hyped" ASP revenue whereas I doubt more than 10%? of CPI is ASP at this point. Anyhow these are 2 very small companies USIX cash $165 million Corio $46 million before July IPO Also here is an interesting article biz.yahoo.com Food for thought anyways, and I still see no justification for $1 billion or even $500 million valuation on this unit .... Feel free to be critical of my analysis but it's backed up with numbers...

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