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Technology Stocks : ADSP - Ariel -- Ignore unavailable to you. Want to Upgrade?

To: Charlie Smith who wrote (1144)	2/25/1998 9:05:00 PM
From: Jim McCormack	Respond to of 2263

Key Story Pushes Ariel Below is the story as for earnings on the 5th it is not likely IMHO after reading the SEC filing that profitability will arrive until later this year as in like September. They need a huge increase in sales to 27 million plus... Check out the SEC filing as it is all there.... Please see my previous post here - As stated in the post I like the stock and don't yet own it. Have to see how much new stock they float and dilute current holders.... Ariel Corp. Up 16%; Analyst Sees Pacts From Major PC Makers February 25, 1998 By Janet Morrissey NEW YORK (Dow Jones)--Ariel Corp. (ADSP) shares rose 15% Wednesday on market watchers' anticipation the company could soon receive significant contracts from major personal computer makers for its remote access technology. Analyst Anthony Stoss of GKN Securities said speculation is running rampant that PC makers are about to break into the remote access market and effectively knock out competition from smaller players in that segment through low-priced open systems. To accomplish this, he said, talk has reached a feverish pitch that Ariel, with its technology that allows customers to simply plug its board into a Windows NT file server to get remote access capability, will be the beneficiary. "This is the only company that has a product like this that would allow PC manufacturers to go after that market at this time," said Stoss. PC makers rumored to be interested include International Business Machines Corp. (IBM), Hewlett-Packard Co. (HWP), Dell Computer Corp. (DELL) and Compaq Computer Corp. (CPQ). With Compaq selling 750,000 file servers in 1997, Stoss said, it is easy to see how lucrative a contract could be for Ariel if the PC maker offers to package the servers with remote access capability. "Once one PC manufacturer goes after the (remote access) market, they'll all go," said Stoss. Ariel Chief Financial Officer Gerard Dorsey confirmed the company is negotiating with a number of major players and said he expects at least one contract before the end of the first quarter. Stoss said the remote access market is undergoing "tremendous growth," adding that he expects demand to triple by 2000. Ariel's shares recently were up 1 1/16, or 13.7%, at 8 13/16 on Nasdaq volume of 610,000 shares, compared with average daily volume of 96,000 shares. Earlier, the stock traded as high as 9 1/4. Another analyst, Richard Sherman of Pennsylvania Merchant Group, said Ariel "has been gaining momentum in the remote access business" since securing a contract from Cabletron Systems Inc. (CS) last month. Both Sherman and GKN's Stoss speculate it's only a matter of time before the big PC makers adopt the technology and barge onto the remote access scene. Remote access technology hooks up customers to the Internet or their company's file server from a distance. That is vital to the growing telecommuter market, which needs off-site access to the company's network so employees can work from their homes. Analysts describe Ariel's technology as less costly and easier to install than remote access products now offered by other companies, such as Ascend Communications Inc. (ASND). These other companies provide a costly closed-end box that serves as a separate remote access server in addition to the customer's existing file server. Ariel's technology plugs right into an existing Windows NT file server. Stoss, who has a buy rating on Ariel, expects the company to be profitable in 1998. Ariel Financial Chief Dorsey said he expects to report the company's first profit this year since going public in January 1995. A Compaq spokesman wouldn't say if the company is negotiating with Ariel. Officials from IBM, Hewlett-Packard and Dell couldn't be reached. -Janet Morrissey; 201-938-5400

To: Charlie Smith who wrote (1144)	2/26/1998 10:14:00 AM
From: John Curtis	Read Replies (1) \| Respond to of 2263

Charlie: No URL that I know of, but the news came out yesterday. I found out because the news was associated with one company I follow(Compaq). Regarding ADSP, I never "chase" a stock, and since ADSP appears to be surging right now because of that recent news, I'm loathed to jump in. However, that surge will most likely be quelled by their next earnings release(assuming it's not great like this, and other, threads think). Once it falls back, why I just might jump in! Regards! John~