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

To: David Lawrence who wrote (3619)	5/15/1998 2:04:00 PM
From: Steve Rolfe	Read Replies (1) \| Respond to of 9236

Old(April 17th) First Call article that contains some useful info. I apologize if all of this info is already known here. What exactly has changed in the last month? Furman Selz Aware, Inc. (OTC: 13 9/16-AWRE)+ Quarter Slightly Better Than Expectations; Maintain Estimates and BUY Rating April 17, 1998 Michael Neiberg (212) 808-3656 BUY ú AWARE reported first quarter EPS of ($0.07) slightly better than our estimate of ($0.10) ú Maintaining Estimates and BUY Rating ú Details given on Lucent licensing agreement ú xDSL market continues to gain momentum driven by PC industry Yesterday after the close of trading, AWARE reported first quarter results which were basically in line with expectations. As we have highlighted in the past we believe that the indicators of future profitability for AWARE are the size and timing of the development of the ADSL market and Aware's level of participation in the market. We believe that once commercial deployment of ADSL occurs revenues should accelerate dramatically and positive EPS will follow for AWARE. Revenue of $2 million in the fourth quarter, was essentially in line with our expectations and EPS, of a loss of ($0.07) was slightly better than our expectation of a loss of ($0.10) as operating expenses did not grow as fast as we had modeled. As we have highlighted in the past, the company can not control the timing of the development of the ADSL market. However, the recent creation of a consortium of computer vendors, communications carriers, and equipment vendors based on AWARE's DMT technology, as well as the recently announced deal with Lucent Microelectronics leads us to believe that AWARE will be a significant participant in the inevitable commercial deployment of ADSL. Therefore, we are maintaining our 1998 and 1999 EPS estimates of ($0.15) and $0.10 and maintain our BUY rating on AWARE shares.