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 : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Bobo who wrote (6959)	9/27/1999 12:59:00 AM
From: Tim McCormick	Read Replies (3) \| Respond to of 9236

Aware guided analysts in the Q and A part of the CC from quarter before last which is not available for replay that initial shipments are around 10% of chip revenue and drop to around 5% as product ramps. This is not uniform by customer and product and is rough guidance. Some customers are not even on a percentage based contract and pay by unit. You can assume chip prices are currently in the process of dropping from $50 to $30. Many industry insiders believe Aware only receives 50 cents per chipset firmware unit in a multi-million port deployment. Although Aware is not G.lite dependent, G.lite acceptance appears to be taking longer than expected. Broadcom has deemphasized ADSL chipset development in favor of VDSL. Aware promised a VDSL chip would be available last April to CMP and in their last annual report. We have received eerie silence on that front. Most CLECs are going after the business market cream which is predominantly SDSL, Aware abandoned SDSL development two years ago. The Intel roadmap calls for offloading DSL functions onto the CPU, and doing DSL in software-see Itex. TXN appeared to have been out of the market until recent design wins were announced. ALA has the big advantage of huge market share in the CO market through their winning of the JPC contract years ago, and this gives them interoperability leverage in the CPE market. There is plenty more competition than this, and yet many Aware holders think Aware has some magical grip on the DSL market. This is a situation which is sure to dissapoint-the question being as to when. Tim