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Technology Stocks : PairGain Technologies

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To: Street Walker who wrote (24524)	6/21/1998 12:31:00 AM
From: TwoBear	Read Replies (1) of 36349

Just read the annual report. If this has already been posted please forgive me for overlooking it. But the key point made by Strauch in the whole report was concerning the deal with Rockwell. "Rockwell Corporation is a leading supplier of analog / dial-up modem chipsets, with over 60% of the worldwide market, We have entered into an exclusive relationship whereby Rockwell Semiconductor Systems will license PairGain's DMT ADSL technology into its next generation of consumer modems. This will generate royalty revenues and capture a share of the ADSL component market for PairGain, BUT MOST IMPORTANTLY, PROLIFERATE OUR ADSL TECHNOLOGY IN THE MARKETPLACE IN A FORM THAT IS FULLY COMPATIBLE AND INTEROPERABLE WITH OUR DSLAM PRODUCTS." Sounds like the royalties are just a bonus. The real key was getting the PAIR chipsets on the modems so that the PAIR DSLAMS will be the most compatible product with 60% of all ADSL modems. What do you think?

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