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

To: johnlea who wrote (8227)	3/22/2000 2:07:00 PM
From: ayahuasca	Read Replies (2) \| Respond to of 9236

Here is an email I just sent to Aware's IR. I only had a few minutes to bang it out... Hi there. I have been an investor in Aware for a good while now and am enthusiastic about the outlook for the company. What troubles me is the seeming divergence in stock price between Aware and other similar companies such as VRTA and GSPN. The latter two have exploded into the stratosphere and now command market caps of 3.2 and almost 8 billion respectively. Aware on the other hand has a much lower cap of around 1 billion. What I am having trouble figuring out is why the analysts and the market seem to value those two companies at such a higher level than Aware. Aware has a very strong client list and their prospects seem every bit as bright (if not brighter) than these other two companies. So why the divergence in valuation? Why the lack of attention? Is there something fundamental that I am missing here? I have been very impressed with Aware's recent updates to investors and their immediate response to the recent VRTA announcement. It is comforting to know that the company is concerned with keeping their investors up to speed on industry developments and I, for one, greatly appreciate that. Perhaps this proactive stance should be expanded in an effort to get more of the analyst community interested in the stock. This is the time when people should be looking at the amazing growth in DSL and Aware's substantial position in making it all happen. What we seem to have instead is an extremely volitile stock with little institutional support which is dreadfully undervalued compared to it's peer group. Any insight you can share regarding these matters would be most welcome. Thanks for your time. Best, Mark A. Jordan

To: johnlea who wrote (8227)	3/22/2000 3:28:00 PM
From: Scrapps	Respond to of 9236

John. RE: Your comments on GSPN.... I decided to take the time to read GSPN's last 10-Q and find this portion worth sharing. Especially when we know that LU is GSPN's FAB and could slow the production of chips to GSPN in favor of a LU customer deal. A relatively small number of customers account for a large percentage of our net revenues. Our business will be seriously harmed if we do not generate as much revenue as we expect from these customers, or experience a loss of any of our significant customers, particularly Cisco Systems, or suffer a substantial reduction in orders from such customers. In the five months ended December 31, 1996, the years ended December 31, 1997 and 1998 and the nine months ended September 30, 1999, our customers who individually represented at least five percent of our net revenues accounted for 85.5%, 72.6%, 70.1% and 61.0%, respectively, of our net revenues. In 1996, our top three customers were Lucent Technologies, LG Information & Communications and Ascom Hasler AG, which accounted for 27.2%, 15.9% and 12.0% of our net revenues, respectively. In 1997, our top three customers were LG Information & Communications, Ascom Hasler AG and Westell Technologies, which accounted for 21.4%, 12.5% and 9.6% of our net revenues, respectively. In 1998, our top three customers were Cisco Systems, NEC Corporation and Ascom Hasler AG, which accounted for 48.3%, 12.6% and 9.2% of our net revenues, respectively. In the nine months ended September 30, 1999, our top three customers were Cisco Systems, Paradyne Corporation, and Ascom Hasler AG, which accounted for 46.1%, 7.7% and 7.2% of our net revenues, respectively. We do not have purchase contracts with any of our customers that obligate them to continue to purchase our products and these customers could cease purchasing our products at any time. Furthermore, it is possible that DSL equipment manufacturers, such as Cisco Systems, Paradyne Corporation, and Ascom Hasler AG, may design and develop internally, or acquire, their own chip set technology, rather than continue to purchase chip sets from third parties such as us. We expect that sales of our products to relatively few customers will continue to account for a significant portion of our net revenues for the foreseeable future.