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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: contax who wrote (5597)	6/24/1999 11:48:00 AM
From: David Perfette	Read Replies (1) \| Respond to of 10309

I believe the recent weakness in WIND's shares is attributable to it's new pricing model which, as I had mentioned in my post a few days back, will cause a slow down in WIND's top line growth for the next quarter or two. Karim, I found an article from a few weeks back that addresses the earnings concern. Did a quick look and did not see this previously posted. -David Article 1 of 116 Wind River Chairman Says Software Firm Will Grow And Meet Targets 06/09/1999 Dow Jones Business News (Copyright (c) 1999, Dow Jones & Company, Inc.) NEW YORK -(Dow Jones)- Wind River Systems Inc. Chairman Jerry Fiddler said Wednesday the software firm plans to make new investments and still meet analyst earnings estimates. Fiddler said the Internet has expanded the market for Wind River's (WIND) products. The Alameda, Calif.-based company develops operating system software used in embedded processors, or chips in devices other than PCs, and also makes software-development tools. "Some of these new markets will require investments," Fiddler told CNBC Wednesday. "I think we will continue the strong profitability, and we will be able to carry earnings coming up, but they might not rise at the same rate as revenues because when we see investments, we'll go for them." Fiddler didn't specify the investments Wind River is eyeing. "We're growing very nicely and we are far and away the leader in this market," Fiddler said. In April, Wind River reported fiscal first-quarter earnings, excluding items, of 11 cents a share, in line with analysts' lowered estimates. The company also earned 11 cents a share in the year-ago quarter. Analysts had looked for Wind River to earn 14 cents a share in the quarter, but lowered their forecasts after Wind River said revenue would be less than expected because of product-shipping delays

To: contax who wrote (5597)	6/24/1999 12:53:00 PM
From: Joe Smith	Read Replies (2) \| Respond to of 10309

I just don't see how this affects top-line growth. The pricing is still basically the same. This is purely a marketing focus on getting the tools in the door without VxWorks. But what can you do without VxWorks? Write a ton of code to port your COTS RTOS to Tornado. That seems kind of silly to me. Why not just buy VxWorks. And if you are going to port your COTS RTOS, then you wouldn't have bought anything without this new pricing. Someone who wants the whole package still pays the same price. I can't see that many potential customers downsizing their order to take advantage of this. Instead there are new potential customers for the Limited version. IF they want to get away without VxWorks, they'll prbably become frustrated and either buy VxWorks or purchase Consulting time from WIND...