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Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Scrapps who wrote (2450)	1/22/1998 11:57:00 AM
From: Steve Morytko	Read Replies (2) \| Respond to of 9236

Re: the wavelet product ... Once xDSL becomes available to the masses the door opens for a whole new set of multi-media applications that aren't practical to deploy at this time. These applications may use wavelet technology to boost performance for packets such as voice/video where bit loss is not a problem for the most part. There are other compression solutions but as I recall you get much better compression ratios with wavelet technology. I'd guess AWRE would use the same licensing strategy used with xDSL. I don't think wavelet technology contributes much to the bottom line - yet. Certainly some big names might be interested in this product too.

To: Scrapps who wrote (2450)	1/22/1998 8:12:00 PM
From: Elroy	Read Replies (2) \| Respond to of 9236

Scrapps wrote: Aware develops and markets xDSL technology, chipsets, modules and development systems, including hardware and software interfaces, and ultra high-speed modems. I'm not entirely familiar with this company, so forgive me if I'm completely off base. Isn't the eventual success of this company going to depend on sales of DSL client devices? In other words, rather that the consumer buying a USRobotics analog modem, Aware wants the consumer/business to buy an Aware DSL "modem". Although Aware may have the DSL DMT technology, I'm skeptical of Aware's ability to outmarket/outdistribute companies like 3Com, Ascend, etc. That's why I think their best approach would be to sell out to a larger, installed provider of modem/central site equipment and speed that vendors' time to market with Aware's DSL DMT product. The advantage of having the client device maker have a significant presence in the central site device market is obvious to anyone that watched the 56 Kbps modem event develop. As for royalties, I know lots of companies have liscensed Aware's technology, and that could provide Aware with a stream of cash, but I doubt that collecting that cash and doing additional research is Aware management's goal (just guessing here, never met any Aware management). While the royalty payments are great for Aware, they probably won't support the costs required to set up a significant sales/support/marketing infrastructure that will be necessary for a company to sell DSL "modems" to consumers, something that is supposed to become "widespread" in late 1998/99. That's my take. If someone knows better about Aware's long-term (1-2 year) strategy, please let me know. Thanks,