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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: Ronald Paul who wrote (3252)	5/29/1998 2:09:00 PM
From: peter grossman	Read Replies (1) \| Respond to of 10309

Thanks Ronald, You've answered my first question about usual lag times. Given considerable lag time, my second question solicited speculation about important design wins already under WIND's belt that may derive significant royalties down the road. Of his innumerable insights, Allen has pointed out that WIND will derive revenues and earnings in three ways. 1) Seats, support and service. As I recall, Allen estimated that over time (5 years?) growth will diminish in this area from about 45% per year to 30% IMO, this performance alone justifies WIND's current valuation. 2) Rainmaker VC type RTOS integrated investments. In the conference call, Ron A. referenced the Navio GUI quite favorably. If MSFT is opening/broadening a "consumer embedded" market, such as set top boxes and palm sized devices, this new interface may promote WIND's competitive position beyond the deeply embedded markets. 3) Blockbuster royalty deals. We know a lot about I2O projections, but very little about current design wins which might garner significant royalties, even if they are 1/5th those of I2O. For instance, does it make any sense to speculate about royalties down the line from JetSend? or Adobe postscript printers? etc.? TIA, Peter