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

To: Jason Cogan who wrote (2382)	11/11/1997 6:42:00 AM
From: Don Mosher	Read Replies (1) \| Respond to of 10309

Jason and other shareholders; Yesterday I received a packet of announcements and analyst's reports from WRS that detailed their progress over the last three months. 1. WRS launched a new coporate complex, the Alaska Basin Project, because, as Ron Ableman noted, their phenomenal growth in the marketplace caused them to outgrow existing facilities. 2. With Hewlett-Packard, WRS provided a turnkey solution for developing information appliances using H-P's JetSend in the Tornado Development Envionment that permit flexible and simple communication between appliances. 3. WRS shipped Tornado for i2o, with its only commercially available RTOS, IxWorks. It provides Interface Serviced Modules that are used in implementing communication protocols, network management, encryption, RAID, and peer to peer interaction. The WindLink marketing program helps system integrators and hardware and software developers sell the customized TDE for i2o that ships with every Intel i960 RP/RD processor. 4. With Motorola, WRS brought the TDE and WindView, a system visualization tool, to M-CORE, a 32-bit RISC microprocessor designed for the low power, smaller, less expensive applications that use pen cell batteries. 5. WRS, with Intel and Motorola, annnounced and held its premiere Developers Conference focused on embedded real-time solutions for software and hardware developers. 6. With Applied Microsystems, WRS integrated APMC's CodeTEST product into TDE. This enables developers to improve the quality of their C/C++ code by identifying errors easily, reliably, earlier, and effectively, thereby reducing costs. 7. Tordado for DSP, initially available for Motorola's 56300 DSP family, provides a full set of intuitive and graphical tools and new real-time operating system, WiSP, that scales to under 2K. The 3.4 Billion market for DSP systems rquires a run-time environment that minimizes demands on memory and the latency of interrupts; the structure and reliability of WiSP produces predictable levels of performance in contrast to writing directly to the hardware. 8. With Objective Software Technology, WRS introduced the first dynamic C++ visualization tool to the embedded market. Look! for Tornado enables developers for the first time to see and debug C++ applications as a world of interacting objects, 9. With Digital Equipment Corporation, WRS brings IxWorks IRTOS to DEC's StrongARM processor for i2o products. Tornado for i2o will ship with Digital's family o fi2o processors for 30-day evaluation. Not only is I/O processing split off from the CPU, but also multitasking is split off in WIND's off-the-shelf solution, IxWorks, that provides as much as 80% of the code required to meet the i2o architecture specifications. After announcing July quarter results, four analysts raised estimates. W, A & H maintained their Long Term Buy-Aggressive Growth rating. UBS Securities maintained its Buy rating, noting the upside potential of i2o revenues not included in forcasts. H& Q reiterated its Buy, noting that although the stock looks expensive, their estimates are very conservative, given the potential for i2o royalties. Deutshe Morgan Grenfell offered a rating of accumulate with five reasons to buy: 1) 32/64 bit RTOS/tools market projected to grow at 35%, 2) WRS is leading RTOS/tools vendor, and is gaining share, 3) business model creates recurring revenue, 4) Intel i20 initiative provides potential revenue upside, and 5) Support for Windows development in Tornado doubles potential Wind River developer market. I am sure other shareholders join me in congratulating Wind River's team on its excellent progress over the quarter. Don

To: Jason Cogan who wrote (2382)	11/12/1997 1:51:00 PM
From: Michael Greene	Read Replies (1) \| Respond to of 10309

Jason, I am not able to expand a lot more upon Ron Abelmann's comments. Competition for his time was high and thus our exchanges were short. I tried to use my time to ask the many questions that I had rather than pursue a few in depth. Since Michael Real also had questions about the investment firms covering WIND at AEA perhaps a quick description of the conference is in order. The participants consisted of about 2000 institutional money managers and analysts along with over 400 companies. WIND was in Section 1 which lasted a day and a half and included 150 companies. Each company was assigned a hotel room and made a presentation each hour for a total of eleven presentations. The hour typically consists of a 30 to 40 minute presentation by the CEO and CFO followed by Q&A then a five to ten minute period when all of the analysts are in motion to their next company. There is no scheduling - it is completely open. This may sound a little chaotic but in fact it works quite well. Even with the small group format, though, the 10 to 15 minute Q&A does not go very far when everyone is competing to get their questions answered. I did go back to WIND a second time to get some additional air time. To answer Michael Real's question - UBS, DMG, WA and H&Q were all present at the conference in force. Pilgrim had two representatives but I do not believe that Twentieth Century was there. Wind River's presentations were well attended and there is no doubt in my mind that each of the above companies visited WIND. However, I really cannot personally attest to this nor give any insight to which other companies might be considering initiating coverage. I did do some informal polling as I have done the previous two years to see if analysts to whom I spoke had an opinion on WIND. The results indicated to me that WIND is still not a household name among tech analysts but certainly awareness is growing. In addition, those who knew of WIND all had favorable opinions. Jason, let me try to address your questions as best I can 1. As far as the NC goes I can not add anything beyond Dave Lehenky's post 2386. Ron really said nothing more about it than what I posted. If I were building a revenue model for WIND my inclination would be to enter zero for NC revenues and if anything shows up treat it as a bonus. 2. I have never seen or heard any discussion about how current automobile royalties are setup or for that matter whether or not there actually are royalties. 3. I also read Allen Benn's postings where he expressed an opinion that the synergy between WIND and Qualcomm on infrastructure would likely give WIND an advantage on the handsets. This is the reason that I asked about the Qualcomm relationship. I hope that Allen's analysis is correct, however, Ron clearly does not share this view. 4. WIND's share of the 32 bit segment of the market was not specifically addressed. However, they made the point that they do not pursue the market below 32 bit at all and 98% of their business is 32 bit related. They said that there is little opportunity for commercial RTOS vendors in the 4, 8, and 16 bit segments. Their growth is all in the 32 bit space. 5. There was no discussion in the sessions which I attended on the ramifications of the Intel takeover of the DEC semiconductor operations. Regards, Michael