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Technology Stocks : XYBR - Xybernaut

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To: Charles Broderick who wrote (1890)1/14/1999 3:41:00 AM
From: Dave Shoe  Read Replies (1) of 6847
 
>>>So the relationship between IBM and XYBR
>>>is down to "IBM has formally licensed XYBR's
>>>voice activation technology"....

I'd guess that Xybernaut is utilizing IBM's voice recognition software (not their audio or A/D circuitry) in the MA-IV. This has a retail price of $150. OEM volume pricing can be crudely estimated to be $80 a unit.

Last check, there were four voice recognition software packages readily available to the consumer. I believe Dragon Systems has the highest performance rating, Philips the lowest, with IBM and another in the middle of the pack. These ratings are fluid no doubt, changing from rev-to-rev, month-to-month. But I'm sure IBM is happy to have this contract.

IBM's current marketing strategy (my humble observation, which is not based on fact) appears to be to involve itself in as many PC/internet oriented situations as possible. This will allow them to remain a dominant force as their Enterprise System and Application System computer lines (I forget the exact terms - same thing as big-size and mid-size computers) give up ground to the internetworked PC.

IBM needs Xybernaut right now. This will give IBM early saturation in the wearables market and allow them to tweak their product to work most effectively in wearable situations.

As far as a financial relationship between Xybernaut and IBM, (I'm only guessing here but) I suspect Xybernaut is in the driver's seat all the way.

Sony's involvement would actually represent the deeper relationship. Significant costs were incurred to develop the tooling for molding the MA-IV. Similarly, significant investment has been made in the production line at Sony. Still, Xybernaut is in a good position to capitalize from the easily estimated costs borne by Sony and covered by sales of the MA-IV.

In the words of one Sony executive, "Xybernaut will be making money up the ying-yang." I think I may have either paraphrased or imagined that last quote.

Also, I may have accidentally stated some facts correctly. If so, this should be considered coincidental only.

Anyhow, have a good rest-of-the week.

Shoe.
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