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

To: wildhart who wrote (9161)	6/7/2000 10:12:00 PM
From: trenzich	Respond to of 9236

I think maybe you need to invest in mutual funds <VBG> what say you scraps

To: wildhart who wrote (9161)	6/8/2000 12:02:00 AM
From: Perry P.	Read Replies (1) \| Respond to of 9236

Wildhart, I would be glad to answer your questions to the best of my ability. Also, I would ask Scrapps and the other fellows to add their input also. We have a great thread here, at least it is when Scrapps decides to get out of bed. I will not go into what they do in general, because you can read that at their website at www.aware.com. What sets them apart is that they sell DSL know how to companies like Analog Devices, Intel, Lucent, NEC, Infineon, etc. These companies then use this technology to make modems and Central office equipment to sell to phone companies and CLEC's and you and me. It is the relationship with so many top notch companies that makes me so bullish. Aware gets royalties for each chipset sold by one of these companies. Their revenue is growing exponentially, and Intel has not even started to show up in that royalty stream. Not to mention DSL is really just starting and it has taken a while to get the standards in place and get every company on the same page. That has just started to take place. Aware is at the forefront of all the action. As DSL moves toward plug and play capabilities, Aware is poised to take advantage of that with Intel and Lucent and 3COM. All of these guys want to sell modems on store shelves so the consumer can do exactly what he has done with his 56K modem. That has not been possible before in DSL. It is starting to take place. On top of all of that, G.Lite is starting to move and Aware has a patent pending that may give them royalties from anyone who uses the G.Lite standard. That is somewhat debatable, but does give some possible upside. Their competitors are Globespan, Alcatel, Orckit, Virata, etc. Plus any company that has opportunity for in house development. I believe Aware will reach 100 in 6 months. I am truly a die hard long. Once Intel announces sales of Aware based DSL modems and the revenues continue to accelerate, this puppy will fly pretty high. This is all my opinion of course. It could hit 24 again in a week. Welcome aboard the USS Enterprise wildhart. Never a dull moment! Perry P.

To: wildhart who wrote (9161)	6/8/2000 2:30:00 AM
From: Elroy	Respond to of 9236

-What is the product offerings that give awre its competitive advantage? Aware doesn't sell a product, per se. It's engineers go into a chip maker and help the chip maker design a chip based on Aware's technology. Aware gets basically consulting revenue for this assistance. Then the chip maker probably buys some Aware test equipment to test the xDSL chip - Aware calls this product revenue. Then, and this is the amount we care about, Aware gets some royalty revenue for each of these chips the chip maker sells. The competitive advantage, if any, is the belief that the chip maker cannot make these chips without Aware's engineers and patents (which are pending). Orckit, Pairgain, Globespan and Alcatel would argue that they don't need Aware. Intel, ADI, Siemens, NEC, Lucent and others have admitted that they might need Aware. -Who are the main competitors? In xDSL the above mentioned companies. In other technologies, cable access and wireless access providers (they probably don't need no Aware-based chips). -How big do you imagine AWRE could become Not that big. But they could have a huge gross margin % since the royalty number is 100% gross margin, and is supposed to (over time) become their main revenue stream going forward. -How would wireless affect their business? If it reduced the demand/need for xDSL usage, it would be very, very bad. Something to worry about in 2006, perhaps... Elroy As for investing, Aware's prospects are great. Revenues and earnings are definitely going to be beaten for AT LEAST the next 4 quarters. The only thing to worry about is valuation.

To: wildhart who wrote (9161)	6/8/2000 4:10:00 AM
From: Scrapps	Read Replies (1) \| Respond to of 9236

Wildhart. I see you've been a member of SI since feb...not a real long time. May I suggest you spend the better part of a day on the AWRE website reading everything from press releases to descriptions of their technology. Find out their customer base and read their charts over the last few years. Then listen to their recordings of their conference calls. Then on day two read through the posts of this thread for the last 18 months or more...scanning them is all that is required. You may want to ask Perry what his basis is per share. <GGG> AWRE is a good company and sound investment IMO...but time is required before we are the next QCOM.