Jefferies report, June 7th on INSG:
Reveals many INTERESTING facts about Insignia,things not out yet:
"Sonic Software told us that Jeode would be included in its multi-protocol wireless implementation that is expected to be available in 4Q 01.The benefit of multi-protocol connections is enormous for wireless users.Instead of losing signals and needing to reinitiate the request for data, Sonic software's solution will scan for the optimal connection and transparently manage the transition so that the user is unaware that the source of the signal has changed.Revenues should follow deployment in early 2002.
" The second bit of news was the selection of INSG by CPQ for the iPAQ PDA of which 600,000 units have shipped and are selling at about 120,000-140,000/month. We suspect this is more than a deal to retrofit existing iPAQs with Java(for $19.95 INSG will install it, enabling Java applications and enhancing performance). We anticipate the potential market to be approximately $60-70 million for retrofits. If INSG were to capture 20% of the existing units, it would double our 2002 revenue estimates. We are waiting for evidence of traction before addressing the bottom-line impact of the deal.
"We suspect the deal with CPQ will carry over to regular production Pocket PCs and other iPaq products."
" Wind may be having difficulties with its ICE Java browser,acquired several quarters ago.ICE was expected to be used across Wind's RTOS offering, but semms to have hit a wall after porting to VxWorks and will have limited applicability going forward.This opens the door for former partner Espial, an embedded Java browser that WIND used and tried to acquire prior to the ICE deal. INSG benefits from this as it is the VM employed by Espial. This event could accelerate revenues from the larger WIND deal that was expected to contribute to the top line in 4Q 01. We also hear that a few customers of WIND want a VM solution in the current version of VxWorks, not the next addition due out 3Q-4Q 01.This would also accelerate revenues to INSG.
" Insignia announced two important events concurrent withJava one confrence in San Farancisco this week. The first was a deal with Lineo to provide the VM, or virtual machine technology, to accelerate the performance of Embedded Java on the PocketPC plarform.Besides Sharp's Linux implementation on its own PDA,this may be the first deployment of Embedded Linux that we have seen. Many design wins have been announced, but until now no products have shipped. The draw for INSG is that Linux community is a cult-like group of talented developers that are hungry for a toy on which to run their applications.Lineo picked INSG for its expertise with Java browsers and with the PocketPC plarform running an ARM7 chip.Revenues will begin to accure later in the 2H01."...."Given the popularity of Linux in the development community, this PDA has potential to be a winner in the rapidly fragmenting PDA space."
"Jeode also selected for Microsoft Pocket Internet Explorer-On May 31,2001,Insignia solutions announced the availability of Jeode as a plug in that can execute personal Java compliant applets within the browsers for Windows powered PocketPCs. PocketPC users need a Java virtual machine in their devices in order to play Java-based games and utilize Java applets over the internet for dynamic content such as stock quotes,sports headlines, and personalized news tracking.The PocketPC platform is rapidly gaining traction in the PDA space,buoying INSG prospects as well."
"Other parts of the persumed deal with CPQ might include bundling INSG's Jeode VM technology in new iPAQ PDAs and other products not yet released. Since CPQ chose INSG for its iPAC email appliance and results from field testing are positive regarding Jeode's performance,it seems a reasonable conclusion that INSG will continue to be the VM of choice for iPAC and other CPQ products. The revenue impact of future products with CPQ is imponderable at present, but the direction is one that impresses us." |
