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Technology Stocks : Logpoint Technologies (LGPT)

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To: Dolfan who wrote (391)10/19/1998 9:58:00 PM
From: E Wilson   of 698
 
Thanks for the info Mark. I do know a coworker that is planning to attend the show and will ask to see if he can drop by booth #4408 for a look-see. This should be another great opportunity for LGPT to communicate their technology to the important people in the industry.

TBowden, thanks for posting. It's a good question: How much would a company be willing to pay to acquire LGPT's technology. Ultimately, we will just have to be patient and wait. However, in my humble opinion, if LGPT's claims of dramatically improved floating-point performance with substantially reduced silicon area are true, and in light of the industry's recent emphasis on high-speed fp capability, low-cost and embedded systems, you could summarize that LGPT's technology is worth hundreds of millions in the short to mid term, and possibly billions in the long term.

Why? What would a company do once acquiring such a technology? A floating-point coprocessor is a substantial part of the microprocessor chip and becoming more substantial with time due to fledgling technologies such as 3D graphics. By implementing a coprocessor core based on LGPT's technology, a company could design and produce a processor chip with faster floating-point speeds than anyone on the market with fewer transistors, lower power and lower cost. This, in turn, would result in a significant advantage in a highly competitive market.

Once the company has used LGPT technology over, say, two or three generations of processors and gained market share, the acquiring company may choose to license the IP to competitors, customers, sub-contractors, etc. much like LGPT is working to do now. This would result in significant added revenue from the technology (companies such as Texas Instruments attribute large percentages of there annual revenue to licensed technology).

Like I say, this is only my opinion and purely speculation at this point, but one that seems quite possible. Does anyone have any comments or anything to add?

Sincerly,

E Wilson
Electronics Hardware Engineer
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