Good evening to all.
Reviewing the tape and transcribing took longer than expected.
If I could summarize the gist of the CC in one sentence, I would have to say that it was replete with alluring innuendos. There are several things in the works that "we won't comment on at this time." My gut feel for the growth prospects of this company are nothing shor of excellent. What remains to be seen in the short term is how the market behaves tomorrow with AWRE coming in 1c shy of estimates.
As Scrapps mentioned, missing estimates by 1c isn't of much concern because rather than concerning itself with showing a quick profit for Wall Street, they seem to be assiduously using their resources to build a vast groundwork for explosive growth starting Q3 or Q4. They're working with all the right players, starting with Lucent, and I wouldn't be surprised if they will be (or are already) involved with Northern Telecom because they seemed to mention NT more than just coincidentally.
Anyhow, here's some of the innuendos and miscellaneous I noticed [and these are transcribed as best as I could]:
Bender: "While we are not at liberty to discus who, a major OEM has informed us that they are confident that they have won an initial deployment in the 10's of 1000's of lines in Europe and we expect that this deployment may be announced soon..."
Bender: "We expect that we're going to be entering into other semiconductor royalty relationships on both G.lite and ADSL-heavy. WE are in discussions with a few companies now and we've been in discussion with some of our current partners about expanding our relationships, so... [pregnant pause]"
Bender: "Alcatel, Lucent, Nortel need to get into this picture [ADSL] at some point for there to be wide scale deployment of ADSL in the U.S."
Bender: "We have trials over 2 years old at many of the RBOC's, but we don't want to get into who and how many because this is competitive intelligence."
Bender: "So there are an awful lot of things going on which suggest to us that a lot of companies around the world, both at the ROBC & PTT level are preparing plans for their Data-DialTone network."
Bender: "It's fair to say with Amati being acquired by TI that there's really a lack of companies that can supply the ADSL technology that Aware has spend many years developing and has experience deploying. And demand for that technology is going up literally every day."
The jointly developed Lucent/Aware chipset will be able to handle all legacy voice band modems, V.90, 56K standard, plus DSL-Lite.
A questioner (Ron Eiton?): Would Aware like to stay independent, for example, do they have a poison pill [to prevent buyout/takeover]?
Bender: "We're always looking for opportunities to increase shareholder value, but beyond that we'can't comment."
[Bender didn't say they have/don't have a poison pill. I would therefore assume that if a takeover/buyout price is attractive so as to "enhance shareholder value", they would be amenable - anybody else have an interpretation??]
Bender's concluding remark: "And, finally, we are actively focused on bringing our own - and our customers' - products to market and expect more specific trial and deployment announcements in the near future."
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Good luck tomorrow. This looks good to me. The street has been rewarding companies that don't miss the mark too much, but have good prospects going forward. If it drops at the open I'll be adding to my position.
Scrapps, I was referring to Dougjn, just I was reading your message when I decided to post. |
