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Technology Stocks : ADI: The SHARCs are circling! -- Ignore unavailable to you. Want to Upgrade?

To: Tom Caruthers who wrote (2795)	4/4/2002 1:09:25 PM
From: Jim Oravetz	Respond to of 2882

Research In Motion License Pact Significant: Analyst By STUART WEINBERG Of DOW JONES NEWSWIRES TORONTO -- Research In Motion Ltd.'s (RIMM) plans to license its hardware and software platform to other handheld device makers could have big upside for the Waterloo, Ont. company, an analyst said. Michael Urlocker, analyst at UBS Warburg, said the announcement could turn Research In Motion from a niche player in the personal-digital-assistant market into a "much more important technology company." It could also add significantly to the company's top and bottom lines, the analyst said. "I think the question of whether RIMM is going to license its technology to other PDA or phone or handset makers is the single most important question that investors should ask themselves," Urlocker said. Research In Motion, which had often signaled its intention to license its technology, answered that question in the affirmative Thursday. The company said it plans to offer a BlackBerry reference design program that will provide other handheld device manufacturers with a hardware and software platform for building wireless phones. As part of the program, Analog Devices Inc. (ADI), will provide manufacturers with an integrated processor that supports wireless communications and Java applications on a single chip. On Nasdaq Thursday, Research In Motion is up 1 cent to $26.00 on about 1.23 million shares. Company Web Site: rim.net UBS Warburg analyst Michael Urlocker said Research In Motion's announcement is significant for three reasons. First, it increases Research In Motion's addressable market. Second, it will bring the company up-front license fees. Third, there is a "high probability" that Research In Motion will receive a recurring revenue stream in the form of monthly subscription fees. Research In Motion chairman and co-chief executive Jim Balsillie told Dow Jones the company will license its technology to original design manufacturers who make cellular phones, primarily for the Asian market. "These are companies that supply literally tens of millions of GSM cellphones a year (based) on the Analog Devices Inc. (ADI) chipset," he said. The company didn't announce any licensees Thursday. The financial details of future license agreements aren't clear yet. In a February research report, Urlocker said the potential upside for Research In Motion shareholders was as much as $11 a share, based on a one-time license fee. "If RIMM gets a recurring revenue stream from these license deals, the upside is much more substantial," Urlodcker said Thursday. Balisllie didn't say whether Research In Motion license deals will include a recurring revenue component.