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Technology Stocks : COM21 (CMTO) -- Ignore unavailable to you. Want to Upgrade?

To: Kerry Lee who wrote (1280)	12/8/1999 10:33:00 AM
From: pat mudge	Read Replies (1) \| Respond to of 2347

Kerry -- They need to pass. Period. The testing process is on-going. A company may pass on a modem in one wave and then make a change, re-submit and fail. In terms of stock price, passing once is all that's important. Having said that, they do need to have a DOCSIS modem in order to sell to certain vendors. As you know they're selling DOCSIS-compliant modems already. Getting official approval is sort of like Bill Gates needing a diploma from Harvard. Some companies wouldn't have hired him without it. Has that hurt him? Of course not, but had it been up to Wall Street, it would have. I'd guess we won't even know which modem(s) passes by reading the press release. Pat

To: Kerry Lee who wrote (1280)	12/8/1999 12:07:00 PM
From: lml	Respond to of 2347

Kerry & Pat, if I may interject . . . This is in issue that has come up in a number of discussions surrounding certification of CMTO modems. IMHO, the answer to Kerry's question is one of subjectivity, not fact. Basic logic would suggest that the more modems that passed, the better. Taking this logic one step further one can assume that the market will place a greater likelihood upon the certification of the OEM than CMTO's proprietary modem. Hence, while certification of just the OEM will be of benefit, as Pat's comments suggests, it will not impress the market that much, & a selloff of the stock would not be unexpected. OTOH, certification of any of the 4 other modems would be applauded by the market. From what I've read so far, at least one of the modems is so advanced that it may be difficult for CableLabs to certify. I would think that failure of this particular modem would have a de minimus affect upon the stock price since any expectation of first time certification should be significantly discounted. OTOH, if this modem should receive certification on its first try, expect the stock to rocket to "infinity & beyond." Notwithstanding, I think it is visionary of CMTO to submit this advanced modem at this stage of the game to see how it performs the certification tests to learn more of the modem's capabilities as assessed by CableLabs. Failure this time around will be overshadowed by the certification rec'd on the other modems submitted. Had CMTO waited & submitted this modem on an individual basis, first-time failure IMHO would be met more negatively than failure this time around. Let's face it, future failures to receive modem certifications going forward will haunt CMTO for some time to come. No matter how reasonable a modem's failure to receive certification may be in the future, investors will be reminded of the problem CMTO faced on the 1.0 certification over the past 6 months. So, IMHO, CMTOs submittal of these more advanced modem(s) at this particular time is a shrewd strategic move by the management team to gain advantage on the certification of these modems at future certification rounds, & mitigate any future disappointment that might be in store going forward. On this alone, I think management is beginning to show the market that it has learned from past mistakes (discounting the certification process) & has now fully incorporated the certification process into its internal product development & testing program. JMO.