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

To: KHS who wrote (8011)	3/7/2000 11:35:00 PM
From: KHS	Read Replies (1) \| Respond to of 9236

Attn: Mr. Anton Wahlman of Warburg Dillion Read, A few more points to ponder. Please keep in mind I am not going after VRTA's throat, just trying to understand why you have the same rating on both stock. First point.................License/royalty revenue From VRTA's SEC filing: <License revenues increased 28.5% from $1.2 million for the nine months ended December 31, 1998 to $1.5 million for the nine months ended January 2, 2000. As a percentage of total revenue, license revenues decreased from 17.3% of total revenues for the nine months ended December 31, 1998 to 15.6% of total revenues for the nine months ended January 2, 2000. The increase in license revenues was due primarily to an increase in the number of licensees, offset by a substantial decrease in the average selling price for software licenses.> Its clear VRTA's existing products are taking them nowhere. Their new product has no announced customers at this point. No royalty track record. What do you see that we do not see to justify the same rating of VRTA to AWRE. Second point.................... CPE equipment From VRTA's SEC filing: <Our products are incorporated in equipment that is targeted at end-users of DSL technologies. Consequently, the success of our products may depend upon the decision by telecommunications service providers to broadly deploy DSL technologies and the timing of such deployment. If telecommunications service providers do not offer DSL services on a timely basis or if there are technical difficulties with the deployment of DSL services, sales of our products may decline, which would have a negative impact on our results of operations. Factors that may impact this deployment include:>> AWRE is selling into the build out at both ends of the copper. It appears VRTA is focused on CPE. Royalty revenue may lag a bit when compared to AWRE. What do you think? Third Point...................... Design win From VRTA's SEC filing: <Achieving a design win with a customer does not create a binding commitment from that customer to purchase our products. Rather, a design win is solely an expression of interest by potential customers in purchasing our products and is not supported by binding commitments of any nature.> This "design win" stuff is pasted all over VRTA's Press releasess. Where's the beef. AWRE know this as well. What do you think? Any Finally....................... Outsource Manufacturing VRTA's outsources this function. Can they alone thrive against the teams of: Aware/INTC Aware/ADI Aware/NEC Is there something I am missing here? We wait for your response. Thank you.