Wind River going up, up, up! Message Board

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Technology Stocks : Wind River going up, up, up!

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To: BlueCrab who wrote (5367)	6/3/1999 11:28:00 PM
From: Peter Church	Read Replies (1) of 10309

Here are answers to questions I posed to investor relations about the services offered by WRS. Thanks to De Anna Mekwunye for the reply: Hi Peter: Sorry for the delay. I forwarded your questions on to a couple of our executive staff. Due to travel schedules, I received the replies today. 1. I note the emphasis on becoming a full service and technology company with service revenues growing faster than total revenues. I wonder if there are other companies that have modeled this kind of business plan. Do you know of other especially high tech companies that do this? Our goal is not necessarily to have our service revenues grow faster than product revenues. The objective of the company continues to focus on design wins and subsequent royalties derived from our customer's product shipments. As the market has started to expand to a far larger potential˜mainly driven by "the Internet's" hunger for server, infrastructure and mainly the Internet appliance market. Customers in this rapidly evolving market require far more hand holding than did our earlier customers. This we are providing with our consulting team˜our Professional Services organization˜and with actual product solutions which we are executing with partners and on our own with acquisitions like Xact and others that I'm sure that we'll be making in the future. These "new products", because they really help the customer get products out, are considered very valuable and therefore should help increase our sales rates and profitability over time. We are now doing the key investing for this exiting potential. I'm not sure that we'll see a significant shift in our services to product ratio which has been roughly in the 25%-30% range of revenues attributable to services and 70%-75% to products. 2. What is the difference between professional services and engineering services at WRS? Our Engineering Services organization is primarily involved with our semiconductor partners in developing reference ports of the Tornado and VxWorks environment. They are part of our strategic partnership programs as well as a vehicle for other semiconductor manufacturers get Wind River software to work on their platform. Our Professional Services is a consulting business targeted to the sales of services to our customers and partners. The work is varied and typically involves design and implementation of various applications on a wide variety of platforms. Wind River typically retains intellectual property on these projects where we provide a comprehensive solution to our customers form consulting and design services to full implementation, testing and deployment of solution into the clients environment. 3. How many Xact engineering staff were hired? We hired a total of 22 Xact employees. 21 of those employees are part of the engineering organization. Regards, De Anna R. Mekwunye Senior Executive Administrator/ Investor Relations Administrator 510-749-2577 phone 510-749-2105 fax

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