I'm reading the Gorilla Game and was thinking about WRS's product life cycle in relation to the standards presented in the book. I concluded that WRS has been in the Bowling Alley at least since it went public, but that hints of entering the Tornado are coming clear. Agreements with the likes of Intel, Sony, IBM, Motorola, TI, Dell, HP, Broadcomm,... show that WRS has become the obvious chosen standard. Second, the business model which Jerry Fiddler has touted for years, that increased complexity and time-to-market pressure will drive the other 2/3 of the embedded software users (roll-your-owners)to WRS, seems to be happening now with a vengeance.
If the revenue growth has not matched gorilla standards (I am not sure what those are yet) perhaps it is due to WRS's delayed revenue business model (royalties). However, Allen's model illustrates the growth potential of WIND's revenues as the company takes an ever greater share of some very fast growing markets. Of course, revenues also depend a lot on the growth of the Post PC markets which themselves may be stuck in the "Chasm" for a while.
I'm also encouraged that Prudential, who I once considered to have a fairly conservative investment style, is now rating WIND with a strong buy. That tells me that Mainstream Wall Street is taking notice.
Is this the year when the promise is realized for those early bowling alley investors speculators and visionaries. Wouldn't that be naive? |
