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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: NY Stew who wrote (10083)	11/11/1999 9:09:00 PM
From: voop	Read Replies (1) \| Respond to of 54805

NY STEW Regarding recurrent revenue streams: Message 3234881 A run time license is essentially a royalty that WIND receives for each product that uses its VxWorks, IxWorks, or other variation real time operating system (RTOS). As part of the Tornado software, which includes an entire tool suite of compilers, debuggers, simulators, etc.; Tornado buyers also negotiate for the right to use WIND's RTOS (VxWorks or IxWorks) on each one of their developed products. The often discussed Intel deal on the I960 chip is one, but their are literlally thousands more, ranging from military applications to switches and other types of telecom equipment. (bolding mine) WIND provides this run time license, which is the right to port the operating system onto the end product. The royalty typically scales down depending upon the number of applications. eg. $100,000 for one application (like the Mars Pathfinder), to $1.50 for each I960 chip that Intel makes. Also: Message 2061308 However, there is the second WIND entity - the block-buster. Block-buster royalties layer on top of the first entity, and simply are not budgeted. This means also there is no plan, at least early on, to spend block-buster royalties. Consequently, I2O royalties will tend to simply add to earnings and EPS in a fairly straight-forward fashion - and probably I2O royalties alone are sufficient to kick WIND's EPS growth next year back up to 75%. I2O alone should be capable of keeping WIND's EPS above 50% growth well past the turn of the century. As the years unfold, I would expect additional block-buster royalties to keep elevating WIND's EPS to growth substantially above the nominal 30% to 40% range. The latter post from ex thread guru Allen Benn now MIA prior to big sell off this year caused in part by delay in i2o Thanks for all your insight on GMST Voop