"Wonder if related to earnings?" No, but there's some news out on the wire that attracted me to ADSP. This company MAY be worth looking into since I believe remote server access is a natural. Here's the news:
NEW YORK - Ariel Corp. (ADSP) shares rose 15% Wednesday afternoon on market watchers' anticipation that the company could soon receive significant contracts from major personal computer makers for its remote-access technology. Cranbury, N.J.-based Ariel designs, develops and markets hardware and software utilizining digital signal processing technology.
Analyst Anthony Stoss of GKN Securities said speculation is running rampant that PC makers are about to break into the remote access market and effectively knock out competition from smaller players in that segment through low-priced open systems. To accomplish this, he said, talk has reached a fever pitch that Ariel, with its technology that allows customers to simply plug its board into a Windows NT file server to get remote access capability, will be the beneficiary. "This is the only company that has a product like this that would allow PC manufacturers to go after that market at this time," said Stoss. PC makers rumored to be interested include International Business Machines Corp. (IBM), Hewlett-Packard Co. (HWP), Dell Computer Corp. (DELL) and Compaq Computer Corp. (CPQ).
With Compaq selling 750,000 file servers in 1997, Stoss said, it is easy to see how lucrative a contract could be for Ariel if the PC maker offers to package the servers with remote access capability.
"Once one PC manufacturer goes after the (remote access) market, they'll all go," said Stoss. Ariel Chief Financial Officer Gerard Dorsey confirmed the company is negotiating with a number of major players and said he expects at least one contract before the end of the first quarter. Stoss said the remote access market is undergoing "tremendous growth," adding that he expects demand to triple by 2000. In afternoon trading Wednesday, Ariel's shares were up $1.188, or 15.3%, at $8.938 on Nasdaq volume of 711,300 shares, compared with average daily volume of 96,000 shares. At its best, the stock traded as high as $9.25.
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I like Dorsey's comment confirming negotiations with "a number of major players." Hmmmmmm.....after some D.D. I just may join the ADSP party.....like I said, remote server access is a NATURAL in today's corporate environments.
Regard!
John~ |
