found this on RACE
Dear Stock of the Month members:
Stock of the Month would like to welcome all new subscribers to the SOTM family.
We are very pleased to report that our past profiles have recently seen extraordinary
success. Our June Profile NPTK (formerly NPTK), since being profiled at 1.94, has
recently hit a 52-week high of 3.22, for an increase of 65% in just one month. Since
being profiled last month we've gained even more confidence in NPTK's potential. So
to all of our SOTM family members that had gotten in close to our profiled price,
congratulations on your great investment! Keep your eyes on this company, as we
expect further developments and company progress in the near future.
July Profile
We are pleased to bring you our July SOTM profile. In an effort to bring you a
company that we believe has good potential for short and long term gains we have
diligently researched numerous companies searching for what we feel is a great
investment opportunity. As always, it is important that investors conduct further
research into possible investments and realize the risks associated with investment in
any company.
With that said, we are happy to bring you our feature profile:
SOTM's July Profile
DATA RACE, INC.
(NASDAQ NMS: RACE)
Profiled
Price:
$2 7/8
(7/21/1999)
Year High:
$9 3/8
Year Low :
$7/8
Shares I/O:
17.8M
Public Float:
14.6M
Two years ago RACE hit an all time high of close to 25. This year the company traded
as high as 9 a share. Similar to our last profile, RACE too has a strong established
trading range. Currently we've seen RACE trading between the 2.75 and 3.5 range.
Based on this and current company developments we feel that recent trading levels
offer a safer investment opportunity for investors. We believe that RACE is a great
play for both the short-term and the 3 to 6 month time frame.
The way companies conduct business is rapidly changing. The work place is shifting
away from office buildings and into homes, cars, airport lounges, hotel lobbies, etc.
Telecommuting is on the rise and businesses are looking for cost effective and reliable
solutions to accommodate the changing work environment. DATA RACE (RACE)
has come up with the solution.
RACE is There for You
RACE recently released a new line of technology that is sure to change the way
people conduct business. RACE developed the Be There! Remote Access System.
This revolutionary system allows telecommuters, road warriors, and call center
workers to access corporate phone lines, data bases, and fax capabilities, all from a
single remote phone line from BEHIND the corporation's fire wall. This revolutionary
technology is easy to install and operate, giving employees the convenience of working
from home. Employers benefit from lower facility expenses and in many cases higher
employee moral.
What is Be There!?
RACE's Be There! Remote Access System is revolutionary. It has the capability of
receiving faxes, data, and phone calls simultaneously, and all from a single analog
phone line. The Be There! system, includes a card that is plugged into the user's
desktop or notebook PC, software that is loaded into the PC, and a server that is
installed at the corporate office and connects the user to the office over a single
telephone line. The server is connected to the corporate data network and to the PBX
or telephone system. For desktop configurations, the user connects a conventional
telephone to the personal multiplexer card in the PC, or to an external Be There! client
box. All the user needs to do is click on the Be There! icon located on the computer
screen and, after completing an authentication dialog, the user is connected to the Be
There! server. The dialog consists of entering the user's name and password, along
with the user's personal multiplexer, which ascertains its identity in the form of a unique
identifier built into each Be There! personal multiplexer. If the server cannot determine
authorization then the connection is aborted.
Once the user has been authenticated, he/she is given access to the corporate data
network, complete with email, file servers, and Internet access, along with access to
the company's PBX or telephone system. As a result, any incoming calls to the user's
office line are automatically forwarded to the user's home phone line, giving the
appearance that the user is actually in the office. This unique ability is known as
Telepresence, and is exclusive to the Be There! system. Even calls made to and from
four digit office extensions are possible from the remote site because an image of the
user's physical office phone, complete with amenities like conference calling and one
touch dialing, appears on the user's desktop screen once the initial connection is
established. This eliminates the hassle of learning a complex new phone system, letting
remote employees conduct their work quickly and comfortably.
For notebook computer users, using the Be There! system is just as easy. The only
difference is instead of plugging a conventional phone into the personal multiplexer, a
conventional phone handset (or headset) is connected to the PCMCIA formfactor
personal multiplexer which is plugged into the user's notebook. It's that easy and
convenient.
Just in the nick of time
RACE's development of the Be There! system comes at just the right time in the
business world. Telecommuting is becoming an increasingly popular way to conduct
business. According to FIND/SVP (a market research and advisory company) the
number of telecommuters has risen from 4 million in 1990 to 13 million in 1998. The
Olsten Corporation estimates that approximately 42% of U.S. companies use
telecommuting, and Infoworld, Link Resources, and the Gartner Group are forecasting
that as many as 30 to 55 million people will be working outside of the traditional office
environment within the next two to four years, and as many as 75 million people in five
years. RACE's Be There! system has the technology businesses need to easily and
effectively provide the appropriate resources to employees working outside of the
office.
Homework
The Be There! Remote Access System is extremely beneficial for telecommuters, road
warriors, and call center workers, not to mention their employers.
· Telecommuters: The recent trend in telecommuting results from a few factors. First,
people enjoy the advantages of working from their homes. There is more time
available to spend with families, individuals on medical/ maternity leave still have the
opportunity to work since they cannot make it to the office, and for businesses it saves
approximately $6,750 in facility expenses per teleworker per year according to the
Gartner Group. Second, a lengthy and often grid locked commute to the office is
virtually done away with. This is advantageous not only to telecommuting employees,
but to their employers and the environment as well. For employers, the time their
telecommuting employees would have spent traveling to work can now be spent on
more rewarding activities, greatly improving the attitudes and lifestyles of their
employees. For the environment, automobile emissions may be reduced resulting in
cleaner air.
· Road Warriors: Traveling professionals (road warriors) require easy access to
phone, fax, and data connectivity from their offices. The majority of their work is
conducted outside of the office, and timeliness and efficiency on the road warrior's
behalf plays a very important role in the company's success. RACE's Be There!
system gives companies the ability to provide highly efficient office resources to the
road warrior. With the Be There! system, road warriors can receive faxes, review
data, and talk with colleagues over the phone simultaneously, and all over one phone
line. This results in greater productivity, faster responses to email and voice mail, and
reduced cellular phone costs and hotel phone surcharges, as phone calls are routed
through the company's phone line.
· Remote Call Center Employees: Call center employees conduct the majority of their
business over the telephone. Because they often work for businesses like airline
reservation centers, they need to be able to access information while speaking with
customers over the telephone, in addition to sending faxes to customers with
confirmation information, etc. Also, many call centers have peak hours of operation,
and it is often difficult to hire extra workers that are willing to work only those limited
hours. This results in very high turnover rates. RACE's Be There! system allows
companies to equip workers with the technology they need to work from home with
the same resources they would have working in a physical call center. This gives
companies the advantage of hiring workers who can work peak hours from their
home, reducing the turnover rate and boosting employee morale and productivity. All
of the necessary resources are available for the remote call center worker at their
home, and set up of the Be There! system is easy and quick.
The Technology
The Be There! system is made possible through RACE's personal multiplexer
technology, which electronically slices the bandwidth made available by a pair of wires
into separate channels. RACE's Be There! system divides the bandwidth into three
channels: fax, data, and conversation. The multiplexer can move 33.6 kilobits per
second (kbps). Normally, the entire 33.6 kbps are dedicated to data, but when
receiving a fax, 9.5 kbps are set aside for the fax transmission, while 8.5 kbps are set
aside for phone calls. How is it possible to have all three going on simultaneously
without the inconvenience of time delays? Voice compression! RACE utilizes the latest
advances in voice compression to provide the user with only slightly modified voice
quality. For more information on RACE's technology visit www.datarace.com.
The Business
RACE had experienced a period of poor performance, but is expected to greatly
improve as a result of its Be There! system, which is currently the only such system in
the industry. In efforts to ensure Be There!'s success in the industry, RACE has filed
various patents to protect its technology and was recently awarded its second virtual
presence patent, titled "System and Method for Providing a Remote User With a
Virtual Presence to an Office."
RACE is also focusing on establishing indirect sales channels, primarily with large
distribution partners that have the distribution power and market presence to boost
credibility, resulting in rapid market growth. RACE entered into an agreement with
Data General, a world-wide supplier of advanced server and storage systems, for
selling the Be There! system and providing pre-installation support and installation
services. RACE entered into a similar agreement with Inacom Communications, a
global technology management and services company, focusing on distribution, sales,
and support.
In recent news, three separate investment firms took a $6 million equity stake in
RACE. This is very beneficial for RACE. Gregory Skalla, RACE's Chief Financial
Officer stated, "This additional investment significantly strengthens our balance sheet,
and will enable us to continue the development and commercialization of our current
and upcoming products. We believe that the additional capital also strengthens the
Company's position in its continuing discussions with several large companies."
RACE also announced that the Be There! system is now compatible with wireless
connections, making it possible for the user to literally have a complete office on the
go. RACE is actively seeking wireless equipment and service provides for partnerships
in order to bring this revolutionary technology to the consumer.
In response to RACE's Be There! Remote Access System, EBI Securities
Corporation initiated research coverage of RACE and issued the Company a "BUY"
rating with a short term target of 7 to 8 dollars.
RACE, because it is currently the only company to provide the services and
communication capabilities found in the Be There! system, is making its name known in
the data communications industry. We believe this is a company that investors should
definitely keep their eyes on because it has the potential of offering great investment
opportunities.
For more information regarding DATA RACE, INC. please contact:
John Liviakis of
Liviakis Financial Communications, Inc.
916-448-6084
www.datarace.com
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Stock Of The Month
sotm.com
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DATA RACE, Inc. All analysis, statements, and expressions made by SOTM are obtained from
materials supplied by selected companies, other public sources, and/or interviews conducted by
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