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Technology Stocks : Systemsoft Inc. (SYSF)

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To: Robert Scott who wrote (2689)12/8/1997 1:45:00 PM
From: David R. Lehenky  Read Replies (3) of 3529
 
The numbers I have heard on this thread were $4-$6. I also
understand that a desktop BIOS royalty is about $2, and a
laptop BIOS runs around $6. It's hard to believe that a
piece of SW like SysWiz, which currently has no peer, would
sell for less than a desktop BIOS that is a commodity item
with established, competing companies. Don't forget, SysWiz
*saves the OEM support $$*, something a BIOS does not. I do
understand that SYSF has unbundled SysWiz into several pieces
that *can* be licensed seperately. I suppose, if a company was
only interested in the remote communications piece, that the
royality could be below $2 a unit.

With regard to the recent Acer and Dell announcements, I found
the wording in the earnings statement to be pretty clear:

"In the third quarter, these pilot programs were migrated into
full SystemWizard product implementations."

and later on:

"Both Dell and Acer have licensed this SystemWizard technology for
use on multiple product lines."

Note in the first quote where it says "full SystemWizard product
implementations". I interpret this as specifically saying "Acer
and Dell licensed the whole enchalada, not just some subset".
The second quote says that both companies are *not* just putting
SysWiz on their laptops.

The SYSF analysts may ignore these deals if they want; I can't.

-Dave Lehenky
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