Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Ramsey Su who wrote (5781)	7/8/1999 3:43:00 PM
From: agent99	Read Replies (3) \| Respond to of 10309

=DJ Wind River Off -3: Chmn: Co. Hasn't Changed 2Q Rev Views Wind River Chairman Jerry Fiddler told Dow Jones that new customer demand for Tornado II "is very strong" and said the company hasn't changed its second-quarter revenue guidance. "We continue to grow comfortably and gain market share every single quarter," he said. Wind River is slated to report its fiscal second-quarter results Aug. 19. Upgrades to Tornado by existing customers would have "no revenue impact to us," Fiddler said, explaining that current Tornado users would receive Tornado II for free as part the annual maintenance contract they sign with Wind River. In his research note, Hambrecht & Quist's Belkin said a derivative of Tornado - Tornado for Managed Switches - that is targeted at the telecommunication industry may not be released until August, from its original June schedule. The delay could push some $2 million to $3 million worth of orders to not be recognized as revenue until the third fiscal quarter ending in October, the analyst said. Belkin cuts his second-quarter revenue view to $35.5 million from $37 million. Fiddler said the version of the Tornado software for the telecommunication industry is "on schedule," adding that "nothing has happened that would lead us to change our own internal revenue estimates," for that product. The executive said the company's $21.9 million acquisition of RouterWare Inc., completed last week, is expected to dilute second-quarter earnings by one or two cents per share. The acquisition could possibly be accretive in the third quarter, he said. Belkin, who said he hadn't received any new earnings guidance from the company, also cut his earnings and revenue estimates for fiscal 2000 ending next January. He cut his earnings view to 63 cents from 73 cents, and his revenue estimate to $155 million from $162 million. Belkin also reduced his fiscal 2001 earnings estimate to 85 cents from 90 cents and lowered his revenue estimate for the year to $190 million from $200 million. In his note, the analyst said the company hasn't yet replaced former Chief Executive Ron Abelmann, who announced his resignation last April. "Given the extent of the transition issues currently weighing on Wind's shoulders, we feel more comfort on the sidelines until a replacement is found," the analyst said in his note. Chairman Fiddler said the search for a replacement CEO is "moving forward aggressively." - Maria V. Georgianis; (201) 938-5244; maria.georgianis@dowjones.com (END) DOW JONES NEWS 07-08-99 03:26 PM

To: Ramsey Su who wrote (5781)	7/8/1999 7:37:00 PM
From: Joe Smith	Read Replies (2) \| Respond to of 10309

>>WIND, in the current immature phase, has no business what so ever to worry about earnings growth. << Ramsey I couldn't agree more. I don't believe that a company should take things one quarter at a time. However, this is why you should never be greedy and you should sell part of your winning holdings from time to time. Because there is fallout from these kinds of sea changes >>I think WIND management really upset the street this year. << That should be WIND upset H&Q. The fact that the others are not following (hoping they don't)shows that WIND mgmt must be doing something to keep them happy Finally, note that the first point the report made was that T2 upgrades are not ramping well. This has no effect on revenue as the upgrade is free. The report seems unaware of that. How well-informed are they?

To: Ramsey Su who wrote (5781)	7/8/1999 7:40:00 PM
From: Joe Smith	Read Replies (1) \| Respond to of 10309

One last thing... I do thing that the report is fair and generally reasonable. There is nothing wrong with their opinion that we should be in a wait-and-see attitude. WIND does have something to prove now... 1. New CEO 2. Ramp-up of i2o 3. Ramp-up of telecom initiatives 4. Ramp-up of client side internet initiatives. Are they on their way to gorilla-dom or are they fodder to the GOR-BILLA G.?

To: Ramsey Su who wrote (5781)	7/9/1999 12:24:00 AM
From: Snowshoe	Read Replies (1) \| Respond to of 10309

Ramsey, here's some interesting speculation from Yahoo thread on Ablemann's departure... Latest Red Herring (august 1999)has an overview of WINDs current situation. it gives a bit of backround on the company and its products and briefly goes over current competitors. Then comes the microsoft portion of the program. heres a bit of the article: "Although Wind River maintains a substantial lead over all its rivals...it has yet to face Microsoft. But the Redmond behemoth is on the verge of releasing a new version of its Windows CE operating system designed for the embedded-systems market. Making matters worse, after heading the company for five years, Wind River CEO Ronald Ablemann resigned in June.(He remains on the board of directors) Mr. Ablemann offered no explanation for his departure, but one analyst speculates that Mr. Ablemann, who was interested in selling Wind River, encountered resistance from the company's cofounder and chairman, Jerry Fiddler. Whatever the reason, Wind River is now in a worse position from which to battle Microsoft, points out Richard Piotrowski, an analyst at the brokerage Everen Securities: "The timing of Ablemann's departure is unfortunate, with Microsoft turning up the volume on its embedded-systems marketing message"" I think this microsoft monkey on WIND's back will make its price yo-yo until we get a public comprehension of what the differences are between WIND and MSFT's products. For what its worth, van -------------------------------------------------------------------------------- Posted: 07/08/1999 03:19 pm EDT as a reply to: Msg 2768 by kwolf11