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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: Frank who wrote (1145)	7/7/1998 7:27:00 PM
From: DrMedina1	Read Replies (5) \| Respond to of 2534

Report on ALYA Conference Call -- 7/7/98 The call started off with a presentation of ALYA's product line which was very similar to the one which Frank gave in the post I'm responding to. However, Doug Corbett, ALYA VP of Marketing, emphasized an aspect which I had not really been aware of before: Most utilities charge commercial businesses on the basis of their peak electric power usage. Typically, this occurs at 9:00 a.m. or thereabouts, when people come into work and the air conditioning (or heating) system gets switched on. Because of ALYA's interoperability on the LonWorks platform, it is possible to have various heating and cooling zones switched on only when employees show up and swipe their security access cards. This results in energy and cost savings. And since a business needs some kind of security system anyway, and OPENCentrix costs no more, it has a real competitive advantage over other systems, which cannot do this kind of thing. ALYA is involved in substantive discussions with many companies about OPENCentrix installations. Names mentioned included Enron, Leviton, North Carolina Power and about a dozen others. Because these are security systems, the discussions are covered by non-disclosure agreements, which have been duly entered into. As a result, the company cannot say too much about the substance of the discussions. It was stated that, in the 20-odd discussions which are going forward (not bad for a company that only released a product in January of this year) not one potential customer has walked away from the table, neither has any indicated that they were considering an alternative system that possessed ALYA's functional advantages. Most of the installed base of security systems is not Y2K compliant. The realization of this fact over the months to come, and, where that recognition does not occur, the failure of many systems after January 1, 2000, will create tremendous demand for replacement systems in the next couple of years. Given OPENCentrix's other functional advantages, many positive surprises for this product are possible. Here's one. As we all know, ALYA has a joint development agreement with Motorola/Indala. We also know about its connection with Echelon, and the boost that Echelon's IPO is likely to give to ALYA stock's visibility. What we didn't know, and which was revealed in the conference call, is that both Echelon and Motorola are in the process of purchasing OPENCentrix systems for corporate buildings -- two different ones, in the case of Motorola. These giant companies are interested in the further establishment of LonWorks as a de facto standard in the controls industry. Since ALYA's implementations are so advanced (the two-year lead was repeatedly reaffirmed), Motorola and Echelon are in essence adopting OPENCentrix as a proof of concept of the entire architecture, in addition to protecting their own buildings with it. ALYA also indicated that they were at this time implementing a shift in their financing strategy from private placements to alliances with significant partners -- which already have the capital and the market and are interested in seeing products incorporating their standards come to market as soon as possible. ALYA's private-label discussions were also mentioned in this context. No specific details were given, as presumably these discussions are covered by the non-disclosure agreements. However, reading between the lines, I personally would not be surprised to read about some significant joint venture agreements being announced in the coming months. It was mentioned that this would be a preferred method of going forward, since it would be non-diluitive to existing shareholders. The goal of ALYA's financing was stated to be an enhanced effort to market the OPENCortex platform. OPENCortex was compared to the Windows operating system. Like Windows, it is a fundamental technology which can be used as the basis for an infinitude of applications in the controls industry. While ALYA's OPENCentrix is a strong and commercially viable product in its own right (projected sales of over $100 million in the next 5 years), the highest potential of the company will be realized to the degree that OPENCortex becomes a standard for control application development in the same way that Windows has in the PC world. What is truly exciting is that this vision may actually come to pass. 1) OPENCortex significantly extends LonWorks(interoperability with NT) 2) This fact is recognized by Motorola and Echelon, who have no desire to lose two years re-inventing the wheel that ALYA has already implemented because 3) They want to use LonWorks to leverage themselves into a dominant position in the controls industry (similar to MSFT in the PC world), as soon as possible. Given the already-existing close relationships between ALYA and the two giant movers of the LonWorks standard and the ongoing discussions between them, plus the additional straw in the wind of the impending Centrix installations in MOT and ECH's headquarters buildings, ALYA might just be looking at the start of a very profitable ride for OPENCortex on the shoulders of some very substantial players. The more I learn about ALYA, the more I like it. The conference call confirmed that feeling. If the price goes up from here (as I expect) I will count my money. If the price goes down, I will buy more (have priced orders working in the 90's -- as usual, no market order, no fill. I may never get it, and I surely don't care.) No matter what happens short term, I continue to expect ALYA to be my best performing investment over the next couple of years. I'm grateful that some of the developments with the company are not quite finalized, and some people are still dubious. Many more don't know about the opportunity. If those conditions did not exist, you couldn't touch the stock for anything like what you can buy it for right now. Onward and upward!