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

To: James Connolly who wrote (9089)	1/17/2001 8:50:36 AM
From: Carolyn	Respond to of 10309

grub - sorry, just saw it.

To: James Connolly who wrote (9089)	1/17/2001 10:21:13 AM
From: Allen Benn	Read Replies (4) \| Respond to of 10309

Unit shipments of network processing components, which include embedded Pentium® III processors, network processors and I/O processors, set a record I listened to the CC and was pleased to hear that the non-IA product space showed revenue growth over 50%. Special mention was made of the IXP family of intelligent network processors, because Intel now enjoys 80 IXP-based design wins. Even more pleasing was the extraordinary quarterly performance reported for “IO Processors”, albeit without specific numbers. Both of these areas involve WIND almost exclusively. The 80 IXP design wins amounts to about 50 more than a year ago. At an ASP of around $150K on average for product licenses involving network processors (higher on average due to TMS-type total solutions), this means WIND probably received $7.5 million in product license sales from Intel’s from IXP customers during CY 2000. Yesterday’s announced partnership with Motorola re the “other” intelligent network processor family suggests that another big chuck of product license sales will come from that source this year, along with continued IXP product license sales. IO Processors have matured well past the development stage and are now being deployed in innumerable IO applications around servers. Thus, the good news Intel reported about IO Processors translates directly into WIND royalties, not just product license sales. In short, the CC bodes well for WIND, and suggests why WIND apparently leased 7,000 sq ft of office space in Beaverton, OR, i.e. Intel’s backyard in Oregon’s Silicon Valley. (As I recall someone reported the lease on this or the Yahoo thread.) Unfortunately for Intel, the CC shows you why large, established companies dominating a particular paradigm find it so difficult to benefit from emerging technologies. As I recall, all the analysts’ questions addressed only generalities or issues specific to IA products (PC and Server x86 CPUs and chipsets). Analysts didn’t bother to ask questions about IXA, IO Processors or network or other consumer products. The reason is they, and Intel, know in the near-term Intel must live and die by the IA sword. Despite Intel’s expressed interest in post-PC products, their $7.5 billion capital expenditure budget for 2001 mainly is targeted at getting the P-4 into full production. Ironically, what is of passing interest to Intel and the analysts, can propel an emerging technology company like WIND into high gear. That’s because inside the 50% non-PC area of product growth for Intel are lots of significant businesses, many of which may well have triple-digit growth rates – and these would probably be the ones given special notice at the CC. Allen