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To: Peter Church who wrote (9274)	3/3/2001 4:20:26 PM
From: peter grossman	Read Replies (2) \| Respond to of 10309

`Royalties revenue was strong this quarter at $36.0 million, up 39% in a single quarter.." As I recall, the previous royalty figure was sequentially down from the then previous quarter. Does anyone have the three reported quarterly royalty figures? Perhaps royalties are seasonal; perhaps they are paid at the end of WIND's fiscal year; perhaps different verticals are only now kicking in, etc. Is there any way to extrapolate from the published royalty figures, and anything else known about their make up, to impact on the lily ponds, or projections of non-lily pond royalty? Potentially, this royalty figure is by far the most impressive and telling figure in the conference call. OTOH, I thought that by far the least impressive was the .06 earnings guidance for Q1, half of analyst estimates. Any thoughts?

To: Peter Church who wrote (9274)	3/4/2001 4:07:55 AM
From: lkj	Respond to of 10309

Hi Peter, I still have not heard of the CC in whole. We know that Intel has shipped record number of I/O processors, so IxWorks royalty should be making new high. We also know that while the new breed of telecom equipment makers are having a tough time, the sales for these gears were actually much much higher than a couple of quarters ago, so TMS must be generating very nice royalty income. I also think that home gateway is growing very fast, but most of the products out there probably are not WRS inside, but in a couple of quarter, I expect Tornado for Home Gateway (maybe it's called something else) will grow extremely well. I am still worried that WRS didn't guide down the analysts far enough. I think that the macro economic condition will effect WRS more than the management expected. I hope that I am wrong. But I think there is a lot of inventory in telecom, IP gears, Servers, and last mile boxes to be worked off. Khan