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Technology Stocks : Drexler Technology Corp. (DRXR) -- Ignore unavailable to you. Want to Upgrade?

To: Leslie1y2o who wrote (17)	5/13/1998 10:28:00 AM
From: Earl Mincer	Read Replies (1) \| Respond to of 59

Agreed Leslie. Ioptics has big plans. But nevertheless... if they are violating Drexler's patents, watch out. And yet I still can't explain why Drexler is going after Microsoft instead of Ioptics. If it's merely because of Microsoft's deep pockets, I believe it's a mistake. Ioptics is the [alleged] infringer and despite Microsoft's backing would be far more likely to settle than Microsoft.

To: Leslie1y2o who wrote (17)	12/30/1998 10:19:00 AM
From: Ausdauer	Read Replies (3) \| Respond to of 59

Leslie and other Drexler devotees, This company was mentioned to me by a friend who is interested in its prospects. There is a certain appeal that this company gives off. As I see it, Drexler is an established company which has patented technology for writing and reading upto 4 MB of data on a flexible, one-dimensional ROM card that is similar to a CD except read in a linear fashion. The company has a long lineage, but this may be the first "out-of-the-park home run" in that the product allows for the durable storage of a moderate amount of data on a credit card- sized form factor . The CEO is in the twilight of his career and finally found an application for the photoemulsion process Drexler discovered some time ago. He owns 14% of the outstanding float. The company has had strong earnings the past four quarters and margins are high. More importantly, margins increase as sales increase due to the fact that the company produces only the unwritten cards, while VAR's package the cards and write individualized software applications. A separate company has been contracted to manufacture the laser reader which is connected to a PC like a parallel drive. My biggest concerns are the fact that this company is, in essence, a one trick pony. If means of circumventing the founding patent are successful this company could go belly up. Also, the lower end market (simpler applications such as product ID's and transportation manifests) may be better served by devices such as 2D barcodes and the like, while the more demanding applications may be better served by smart cards. Solid state memory coupled with a smart card microchip could provide a better solution with infinitely greater storage capacity. For example, 4 MB is definitely too small to use for storage of an entire medical record or even a comprehensive record. That is, the size seems sufficient for textual information, but not graphics. (Also, one cannot discount the possibility of remote storage of confidential medical information such as a simple, protected internet site with unique ID's for each patient record). The use in Resident Alien cards by INR is interesting. It could open the door to other like cards such as Medicaid, Social Security and the like. I thought it was interesting that there are end-users of the laser card in the Phillipines, yet the Phillipine equivalent to the Social Security card is ow being managed with 2D barcodes. Other practical concerns are the need for a separate card reader. I personally do not envision a government agency with a string of card reading devices to support a variety of information storage media. Having said that, I do understand that the company is investing in a multicard reader which would support both a smart card interface and a laser scanner for Drexler's product. Other potential benefits could be lucrative licensing agreements from competitors if, in fact, infringement of the original patent has occurred and commercial applications pan out. Just my thoughts. Ausdauer