Extended Systems Inc (XTND) Message Board

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Technology Stocks : Extended Systems Inc (XTND)

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To: DD™ who started this subject	10/28/2000 6:50:12 PM
From: Mr. Miller	of 403

XTND stockholders meeting notes..... from our friends on the yahoo thread messages.yahoo.com I attended the stockholders meeting in person. In general the meeting was upbeat but not overly encouraging as might be expected. I think the four main things that were important were: 1.extended systems is the only software provider that has a complete solution for mobile connectivity. Other software companies have only part of the connectivity. 2.Bluetooth in China they expect to have a delay of 12 to 18 months. 3.they have looked at the float problem and recognize it but are hesitant to split at this stock price range nor do they want to issue significanly more shares. They did increase the number of shares by 1/2 million to the existing 10 million plus shares. 4> As Simpson put it "no one has come forward with a check to buy the company". They would consider a buyout or merge with another company if they thought it was in the stockholders intrest. As I see it, they are in a sweet spot of an emerging technology with no competion for a complete solution as of yet. Their direct competition only supplies part of the solution. Simpson expects sales volume to accelerate in the second quarter of 2001. messages.yahoo.com Main message I got from attending the annual meeting today was that ESI mgmt. has the following targets. Profit margin increasing from 57% last qtr. to the 75-80% range. Expenses as a percentage of sales slightly increasing and therefore a net profit target of 9-20% of sales. With MIM sales increasing at 50-70% per year you can figure out the projected bottom line. They did not give any dates to achieve these targets but the impreesion I got was they expected to meet them when the Bluetooth market took off. In another part of the presentation Simpson said he felt that Bluetooth products would ramp up through the first half of calendar 2001 with "volume shipments" occurring in the second half of calendar 2001. All in all a very upbeat meeting. Simpson really impressed me conducting the meeting and as a speaker. He is much better in person than he comes across on the voice only conference calls. He answered all questions completely and forthrightly (given the SEC restrictions on forward-looking statements) and called on various XTND staff to provide more complete answers when needed as in the China questions alluded to in an earlier post. He used humor frequently so that the meeting was not at all a dry recitation of the business facts only. Simpson also said that he and Karla Rosa are traveling constantly to discuss and promote the company with the analysts and the investment community. If he conducts those meetings as well as he did this one we should continue to see great results from them as we have in the last few quarters with the huge increase in institutional ownership. A question was also asked about the volatility of the stock. Simpson responded that he is sympathetic to those concerns but that the entire sector has been very volatile of late and that no decision has been reached vis-a-vis increasing the float. W.E. messages.yahoo.com It’s hard to get a real accurate gauge other than, by most accounts by the experts in the field, the market is huge and XTND has the products (many are award winning and comarketed by some top names) within this field (bluetooth is yet another story), XTNDconnect server and family products are very high margin, XTNDconnect server is a cornerstone piece of software utilized in IBM’s Websphere suite. IBM executives said wireless software sales accounted for $250 million in sales last fiscal year. That's small change for a company with $87.5 billion in total revenue last year, but IBM executives say the market potential is huge and believe the portion of the wireless market IBM plays in will reach $83 billion in sales by 2003. The forecast varies, but it goes from huge, to very huge, beyond the above figure depending on which expert you talk to.

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