Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Echelon Corporation (ELON) -- Ignore unavailable to you. Want to Upgrade?

To: r.edwards who wrote (1973)	4/30/2000 8:54:00 PM
From: Zeev Hed	Read Replies (1) \| Respond to of 3076

r. even if I assume your number (and it probably includes natural gas for heating or other heating bills), you'll need to forecast a 25% rate of saving to justify paying $2000, plus let sat $150/year in access and maintenance fees. In Europe, where energy costs are higher, it might be more economical, but the system's costs and maintenance costs might be much higher. I think that these systems could go into some commercial, industrial and maybe educational markets, but only if the payback are less than three years. Otherwise, it will be an uphill battle, and since that battle is waged by the like of Honeywell and Jacobs Engineering, they will reap the majority of the profits, IMHO. These markets is where ELON has been operating so far, and struggling in, I see no sudden "J" curve evolving there to justify anything like a PS of 25. Zeev

To: r.edwards who wrote (1973)	5/10/2000 1:25:00 AM
From: LBstocks	Read Replies (3) \| Respond to of 3076

Echelon's Pact With Italy's Enel For Network Tech Dow Jones News Service ~ May 10, 2000 ~ 12:09 am EST By Don Clark Staff Reporter of The Wall Street Journal Echelon Corp. said Italian utility Enel SpA has tentatively agreed to a far- reaching deal that could place Echelon's networking technology in every home and business in Italy. Under a memorandum of understanding, Echelon said, Enel would pay $300 million over three years to deploy Echelon's technology, which allows remote meter- reading and a range of other communications functions over electrical lines. The Italian utility also would buy three million newly issued shares of Echelon's stock, or about 9% of its shares outstanding, for more than $100 million. Assuming the parties reach a definitive agreement, the deal would more than double the annual revenue of Echelon, a long-struggling company that has never turned a profit in 12 years of operation. Even more important, however, is the possibility that Enel's move will accelerate the use of technology that ties all manner of appliances and business machines to each other and the Internet. "I have always said that there is going to be an earthquake along the way that is going to change the whole landscape," said Kenneth Oshman, Echelon's chief executive officer. "I believe this is that earthquake." Echelon plans to formally announce the tentative agreement today. In 4 p.m. trading yesterday on the Nasdaq Stock Market, Echelon fell $2.125, or 6.4%, to $ 31. Echelon was founded in 1988 by A.C. Markkula, a co-founder and former chairman of Apple Computer Inc. He envisioned tiny, inexpensive control chips that spoke a kind of common language, allowing office machines, factory equipment and home appliances to interact with one another. The company successfully developed the underlying communications technology, which it calls LonWorks. But Echelon ran into resistance from old-line companies that had their own technical standards, as well as competition from companies targeting specific industry segments, such as home automation. Enel is Europe's largest publicly traded power utility, though the Italian government still holds a controlling stake. The companies expect the Echelon technology to reach more than 27 million Italian households. (END) DOW JONES NEWS 05-10-00 12:09 AM