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Microcap & Penny Stocks : ALYA Cost cutting system via software as well as security -- Ignore unavailable to you. Want to Upgrade?

To: Jane Hafker who wrote (945)	6/20/1998 1:54:00 PM
From: LesX	Read Replies (1) \| Respond to of 2534

Confused? I suggest nothing less than retaking your 8th grade English class. LesX

To: Jane Hafker who wrote (945)	6/20/1998 4:10:00 PM
From: DrMedina1	Read Replies (2) \| Respond to of 2534

Jane, I wouldn't respond to "Watson" but I will to you. His analysis of ALYA's financials is ridiculous. I don't think anyone on the thread is interested in a debate about the minutiae of accounting. But consider this: ALYA has been actively in business for about two years. They currently have 29 employees. They couldn't meet payroll, let alone develop real products, on the $300,000 that Shortie, errr "Watson" alleges is all they ever received. As far as ALYA's products go, I'm not aware of any patents that they may have. Their implementations are protected by copyright and trade secret intellectual property laws, as are most computer products. LonWorks is not ALYA's product but is a "specification" developed by Motorola-Echelon. A specification defines a standard to govern the way in which hardware and software can be created and configured together to do actual work. The next step up towards functionality from a specification is a "platform". A platform is actual hardware and software which can be programmed to do useful work. On your PC, the combination of Microsoft's Windows and Intel's microprocessor constitutes the "platform". The platform implements the specification. The Wintel platform can be used as the basis for many useful tasks, but it does not do interesting things in and of itself. That job is done by applications which are implemented by programmers to interact with the operating system to tweak the hardware to do the computing tasks you want done. Think of the application programs you are familiar with -- your Web browser, personal finance software like Quicken, a groupware program like Lotus Notes. All of these programs are implementations built on the Wintel platform. Implementing anything in the world of computers is not trivial. It is painstaking, error-prone work. Testing your work and fixing the bugs takes at least as long as it takes to make something complete enough to test in the first place. ALYA has implemented a highly functional building automation and security system based on the LonWorks specification. The system is modular, which results in much lower installation costs than for competing systems which have to be built from the ground up. And ALYA's systems are Y2k compliant, which is not true of older installations. ALYA's actual products are called OPENcortex, OPENcentrix and OPENlnd. Unlike, say, Quicken, which is purely a software product, ALYA's systems have hardware components -- sensors and other controls -- which notify the system about conditions in the building -- temperature, security breaches, and the like. OPENcortex is a platform for building automation systems, similar in nature to the Wintel platform in your PC, but created for a different purpose. OPENcentrix is a network program running on the OPENcortex platform which allows the sensors in various locations in a building to communicate together and to regulate the climate, lighting, security, video monitoring system and so forth. OPENlnd is the product name of ALYA's hardware controls. They are made with Motorola-Echelon chips. The company's joint development agreement with Motorola reflects MOT's interest in seeing their specification embodied in actual commercial products which can be brought to market. Since Motorola-Echelon makes chips that are used as part of the implementation of the LonWorks specification, their interest is based not on altruism, but a desire to see those chips sold. LonWorks is a relatively new specification, and ALYA was the first company to set about creating a modular Y2k-compliant implementation of a building automation and control system using it. The company has no direct competition at the moment, and should anyone decide to enter this market, ALYA would have an 18-month head start over the new entrant -- that's simply how long it takes to build something useful on the basis of the LonWorks (or indeed any) specification. That's why major companies are discussing private label arrangements with ALYA. They don't want to spend the time duplicating ALYA's excellent efforts. Some of these companies wouldn't have much trouble coming up with the money to do so, but no matter how much money you throw at a computer development project, it still takes as long as it takes. I hope this is helpful. As we have said so many times, ALYA is a startup, and therefore its stock is by definition at least a medium-term hold. While you're holding and enjoying the continuing stream of positive developments as ALYA builds its business, you might as well know what they do.