Phoenix Technologies (PTEC) Message Board

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Technology Stocks : Phoenix Technologies (PTEC)

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To: Mark Brophy who wrote (2913)	11/22/1998 5:29:00 PM
From: Daniel D. Caldwell	Read Replies (2) of 3624

The Phoenix / Intel relationship is generally misunderstood by the group. There is no $.25 BIOS; there may be some imputed price that Intel pays for the work that is done by Phoenix. Intel pays for services and if volumes exceed expectations Phoenix gets additional monies. Right now, it's a good deal for Phoenix on paper, but yes, Intel is demanding. The secondary benefits are what helps most; Intel demands features and quality that helps other customers. Not having Intel is far worse. The BIOS that Compaq and IBM comes from the same code base as Intel to the greatest degree possible with limitations based on IP ownership rights and speed of proliferating new code. They pay a royalty based on volume and engineering fees to adapt the code. As far as Merced; there is money to be had far in advance of the actual silicon availability. A lot of money; trust me.... Phoenix and other companies have figured out that being there ahead of everyone else has a premium that customers are willing to pay for.

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