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 : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: James Connolly who wrote (8853)	11/30/2000 5:08:10 PM
From: James Connolly	Read Replies (1) \| Respond to of 10309

Transcript of CNBC interview........... CNBC- POWER LUNCH WIND RIVER SYSTEMS, INC. (WIND) CHAIRMAN AND CO-FOUNDER JERRY FIDDLER ON EARNINGS NOVEMBER 30, 2000 SUMMARY: Fiddler says their customers are those who are building smart devices. He says the company's market is broad based. He then says the biggest growth is throughout the Internet and on the server side of the business. Bob: Wind River System is reporting better than expected earnings for it's third quarter after yesterday's closing bell. The embedded software maker posted profits of 12 cents a share that compared with 15 cents last year. That was two cents ahead of Wall Street estimates of 10 cents per share. Revenue rose 37% to 114 million dollars. Net income rose 26% to 9.7 million dollars. Shares of Wind are down more than 6%. Let's take a look this afternoon. It is off 28 cents, we are talking about at $37.88. They have traded higher today after a lower start. Here to talk more about the embedded software maker is Wind River chairman, Jerry Fiddler live from CS First Boston Conference in Arizona. Sir, thank you for joining us. Give us a feel for where the market is going and who you have to hope does well? This is beacuase you are not an end product, you have to rely on being in other products. Yes, but we are in such variety of products. Our customers are basically anybody building a smart device, especially connected smart devices. These are all of the things around us that have microprocessors that are now called computers. This is everything from IO equipment and servers and storage equipment to the network infrastructure, to the client devices like cameras and Sony Internet Walkman and printers and all sorts of things. Really our market is so broad based that it is not any one segment that we are so totally sensitive to. Bob: How far ahead of the actual purchase of a product, like a digital camera or something like that, how far ahead of time are you selling your embedded software for that? Well, we were generally in the very beginning of the cycle. So, when we the start bringing hardware up it could be anywhere between six months and two years before the product is shipped. Then with lot of our customers we're doing so many products that we are engaged guide continuously with them. We have recent acquisition of a company called Rapid Logic, which puts us very much in the device management space. Now we are engaged with them even after the device is deployed to help manage those devices. Bob: I guess what I am trying to get feel for is, are you seeing any slow down, because there were people saying that the economy is indeed slowing we are down significantly those are the fundamental but, anything that is concerning that raises a red flag for you? Well, our experience has been that when there is pressure in the way our customer seems to respond is they outsource more. They tend to innovate more, they tend to take the opportunities to say we need something new. Both of those trends are good for us. So, in fact we have not been coupled very strongly to the sort of economic pressure that I think you are referring to. Bob: Where are you seeing biggest growth? It is definitely throughout the Internet, all through it. Both infrastructure and the new client devices, everything from home Gateways to new Internet appliance. Also, we are seeing quite a lot of growth on the server side because we are very prevalent there in storage and in network management, just in IO in general. Bob: What make's your product preferable to say competitors which includes Microsoft? What makes people buy you? What's unique about Wind River is we are an end to end really in two ways. We are end to end through out the Internet because our software is key and pervasive in servers in infrastructure and in the clients. We are also end opened throughout the development cycle. We can help the customers do everything from bringing up their hardware, supply software tools, operating systems middle ware of various types, JAVA protocol, all of way through full solution products. We wrap all that in a set of services and now even help manage the devices once they are deployed. There really is no one else who has that chain available. Bob: All right. Thank you very much and enjoy your visit to Arizona. It is a good time of year to be there. Our thanks to Wind River Chairman, Jerry Fiddler joining us from Arizona. Here is a look at the company over the past year where they have traded. They are not they are up from lows, but they not really gone a great deal to the plus side today. It is a rough market only down half a percent. It is trading at $38.