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Technology Stocks : Aware, Inc. - Hot or cold IPO?
AWRE 1.9400.0%3:59 PM EST

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To: dougjn who wrote (3155)4/1/1998 8:24:00 PM
From: Elroy  Read Replies (2) of 9236
 
Different subject - re: the recently announced expansion in the AWRE/ADI relationship that allows ADI to use AWRE's code, and lets AWRE work more closely with other semiconductor makers.

Does anyone have any idea why ADI would want this? In another, unrelated stock that I follow (medical devices, GSII, and Johnson & Johnson), a similar "opening up of the agreement" was announced, and the reason was the larger, established company (JnJ, in the ADI role) was paying the smaller company (GSII, in the AWRE role) minimum quarterly royalties to use the smaller company's technology. Since the relationship wasn't working after a few quarters, they mutually expanded the agreement to allow the small company to look for other partners in return for the larger company not paying the royalties to the smaller guy. I have no idea if this is the case with ADI/AWRE, but does anyone know if ADI had been paying AWRE minimum royalties in return for the "exclusive" agreement. If so, getting rid of those royalties is one reason why ADI would want to "expand" their agreement with Aware to allow Aware to seek other partners. If not, who has any idea why ADI would want to release Aware from whatever exclusive agreement it had (Aware's motives are obvious).

Elroy (still got no xDSL at my house)
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