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

To: johnlea who wrote (8607)	4/19/2000 10:20:00 AM
From: Elroy	Read Replies (2) \| Respond to of 9236

Forecasts - I see now why the forecast (7 cents) seemed really low since they made 8 cents in December. Some of the analysts are forecasting fully taxed earnings (Aware isn't paying any taxes yet, since they still have tax loss carry forward), so the analysts are predicting 6 cents fully taxed, which might translate into 8 or 9 cents after tax. Of course, not all the analysts are doing this, but that explains the discrepancy. So.....it makes it really easy to beat "expectations" going forward. Elroy

To: johnlea who wrote (8607)	4/19/2000 10:23:00 AM
From: jghutchison	Respond to of 9236

John, it may be due to the fact that Aware is producing less revenue from hardware sales, and more from royalty. Jack

To: johnlea who wrote (8607)	4/19/2000 10:34:00 AM
From: Perry P.	Read Replies (1) \| Respond to of 9236

Don't forget what quarter these numbers are coming from. These sales numbers are from Aware's customers sales from October - December of 1999. You all know what happened in that quarter. Our attention was more on Y2K than anything. So I would guess some decrease from sales in that quarter as every company scrambled to make sure they would still be around come Jan 1, 2000. I would think this next quarterly report will show the steep growth rate of DSL that has really occurred in January - March of 2000. Perry P.

To: johnlea who wrote (8607)	4/19/2000 10:48:00 AM
From: jghutchison	Respond to of 9236

Analyst Updates - courtesy of wewillgetby on Yhoo. - jgh as some of you have noticed, the earnings projections from some firms are fully taxed while others are pre tax - so there are discrepancies. RobbyStephens - 00 - go from 25 to 27cents 01 - go from 43 to 49 these must be after tax - impressed with cash position going up to 6 million - like lack of inventory on balance sheet H&Q - 00 - go from 38 to 42 01 - stay at 70 cents pre tax - say this report validates royalty biz Warburg - 00 - go from 39 to 42 (27 TAXED) 01 - go from 70 to 75 (48 " ) 02 - at 1.33 (85 Taxed) So what have we got - Revenues in line - but royalty/equip mix surprising - a company with 75% fully taxed earnings growth - a company moving quickly to a royalty based revenue stream - new projects, new customers, company going balls to the wall Gross margins are 100% for royalties vs. 70% for equip and 30% for contract So any small bump in royalty revenue has a huge impact on the bottom line. This is the purest, most leveraged play on DSL out there - so if you believe in broad band, and in DSL's role in delivering it - AWRE IS THE PLACE TO BE. ps - Warburg target - 68. --------------------------------------------------------------------------------