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Technology Stocks : NEXAR Technologies : NEXR -- Ignore unavailable to you. Want to Upgrade?

To: pat w. who wrote (65)	3/20/1998 11:05:00 PM
From: mike mulhearn	Respond to of 109

Nexar targets licensing, deals Friday, March 20, 1998 By Todd Wallack An upstart PC maker in Southboro has decided to team up with the big boys. Nexar Technologies Inc. yesterday said it has hired a financial adviser to explore the possibility of licensing its technology, launching a joint venture or selling itself outright to a larger player, like Compaq Computer Corp. or Dell Computer Corp. What makes Nexar different is that it has developed a modular PC design that is easy to upgrade. But the year-old company, spun off from Palomar Medical Technologies Inc. last April, has only a tiny market presence relative to the PC giants. Nexar recorded sales of just $34 million last year and has never posted a profit. Its stock has also fallen from its initial offering price of $9 to $3.50 yesterday, up 25 cents. ''They are trying to figure out how to participate in this multibillion dollar industry,'' said Dale McIvor, a partner with the Connecticut-based adviser, Southport Partners. ''They have proven their concept . . . (but) clearly scale and size has a lot to do with success.'' Nexar has already received a few inquiries from other PC makers, McIvor said, but he said his firm will seek out more. Company officials could not be reached for comment. Jeff Evans, an analyst with Credit Lyonnais Securities in New York, said he thinks the technology has enormous potential but needs wider distribution. ''This is a big market and you need a big drum to beat,'' said Evans. ''This type of thing was not unexpected.'' But even without a deal, Evans said he thought the company could become profitable later this year and survive on its own - selling PCs to large businesses. ''It has a sustainable business model,'' he said.