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

To: Scrapps who wrote (7595)	2/17/2000 6:47:00 AM
From: Bobo	Read Replies (2) \| Respond to of 9236

"Where do you get the %10 royalty figure???? " I spend alot of time in the DSL industry. Noone will really say exactly what Aware's royalty deals are but after a number of conversations I surmised the following: 1) Aware tries to get a % royalty fee on CO chipsets. The best range I could get from anyone was 5- 10% so I am giving the benefit of the doubt to Aware. 2) Aware attempts to get a fixed royalty fee on the PC side to protect them from rapidly declining prices. I heard from a pretty good source that this is $.50 or so. I'll bet that Intel will pay less than this. It seems that the PC side of the equation is the problem for Aware's model. With their Lucent deal, they could get some volume. Most of the client modems are currently external but this could shift if G.lite gets adopted. The problem is that at $.50 per modem, Aware needs a helluva lot of volume to earn big royalty figures. By the time we hit that kind of volume, it seems Lucent will have figured out how to use their own technology. The jury (in my mind) is still out on whether or not Intel will deliver anything with Aware technology.