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Technology Stocks : AWARE -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (428)	7/26/2000 11:39:43 AM
From: Bobo	Read Replies (3) \| Respond to of 2404

In response to your post Elroy. Yes, I am short. Basically you have a company who has the investment public believing that their revenue will scale with DSL deployments. For this to happen, royalty needs to scale because contract revenue does not scale very well. Contract revenue is like consulting revenue, it is just a group of engineers working with big customers for designs. So already, while the chip pure plays demonstrate 30 to 50% sequential growth, Aware shows 7% sequential growth in royalties. What will happen when the market slows from 400% growth to 75% growth next year? There is a disconnect here. This is a company that will make $.30 fully taxed this year in its supposed hypergrowth stage. What will earn next year, maybe $.40? What is that worth? Aware is simply a very expensive option on a Rambus-type play but with the following problems. Most of their IP is G.lite oriented, which limits any royalty. Other key patents have been awarded to TI/ Amati, Alcatel and others. Who says that Aware's patents hold any water?