>>What are your views on this stock now? Do you know when the earnings are due?
WIND holds many realistic promises of rapidly increasing royalty streams, in far more than the three niche markets garnering MWAR's attention. In particular, I2O and the Oracle NC deals alone offer incredible upside opportunity for WIND. WIND's dominance in the tele- and data-communications, office automation and military systems provide reliable sources of increasing revenues, and will carry over to Internet Appliances. Soon, WIND will start to benefit from an explosion of sophisticated hidden computers in automobiles. Don't forget that GM will start deploying a tailored version of VxWorks for fuel injector control in every model-year1998 GM diesel vehicle. Even so, most royalties from automobiles which will accrue early on to WIND and other RTOS vendors are likely to be derived from peripheral devices for navigation, voice control, security, collision-avoidance, communications, entertainment and creature comforts rather than from traditional automobile automation associated with injectors, transmissions, traction and brakes.
WIND reports its 3rd quarter results around November 19. If it shows continuing progress, with revenues still growing in the 45% to 50% range, and earnings growth higher than revenue growth, then it will be the undisputed market leader (its two extraordinary quarters surrounding poor performance by both INTS and MWAR), and the most attractive Embedded Systems RTOS pure play. Look for about $17 million in revenues (up 49%) and 17 cents EPS (up 70%). These projections represent the upper bound, and most likely numbers that should be expected, with the lower bound corresponding to current analyst estimates of just under $16 million in revenues and 15 cents earnings. Incidentally, if the secondary had not occurred in July, then projected EPS would be16 cents. The additional penny is due to extra interest accruing on the proceeds of the secondary, offset somewhat by share dilution, for a slight net gain for prior stockholders.
Read prior posts on both INTS and MWAR recent quarterly earnings report to see that WIND is definitely gaining market share, and is the leading RTOS vendor.
Allen, |
