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Technology Stocks : RETIX (RETX) Perhaps Another Acquisition Target For CSCO? -- Ignore unavailable to you. Want to Upgrade?

To: Adam Smith who wrote (1039)	4/2/1998 12:49:00 PM
From: Adam Smith	Read Replies (2) \| Respond to of 1119

Notes from VRTL Meeting 20 attendees Mostly Vertel board and exec. management Ex CEO Stephan was noticably absent Conducted board business. Loud applause when they buried the RETX name and adopted Vertel name. Brown gave slide show presentation Size of TMN market TMN 500 million 97, 2.3billion in y2k large growth rate Royalty model $50-$100 royalty for every component of network NEC is deploying tens of thousands of units. Market position/competiton DSET, ISR Global main competitiors many other names by layer in the stack HP to ship the joint solution next quarter. vertel one of two companies to embed tmn in switches. MSFT/HP/Vertel working on joint products for june trade show along the lines of previous press release. Said this will be big exciting stuff 60-70 active customers with royalty paying customers. royalty model just kicking in since many of these companies have spent 1 year in development before rollout and royalties paid to Vertel. Revs will show acceleration of royalties. Rev. Model assumptions this year. 25%-50% sales growth. If it explodes possible for 100% Licenses/Royalties 70-73% of revenue operting margins 17%-20%, probably 99 instead of 98 Plan on 1-3 acquisitions per year Plan to do it via stock as currentcy. No plans to raise capital(secondary). Should be cash flow positive this year. 520 people at tmn conf. 1000 per head. 25% increase over last year Bell atlantic at conference said that TMN is the basic tablesteak to get into our org. you cannot sell equipment/services unless you have tmn in it. Setting the standard for their buying future equipment.