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Technology Stocks : Warp 10 Tech. (WARP) -- Ignore unavailable to you. Want to Upgrade?

To: Shih Jen Liao who wrote (1025)	7/11/1998 1:21:00 AM
From: Ted M	Respond to of 1164

Shih Jen Liao, HP will be using Warp's technology. On the HP website under the Internet Imaging Partners Profile is the following about Warp10's Digital Toolkit (I'm not sure who wrote it HP or Warp, but nevertheless it is on an HP web page): "The Digital toolkit provides a robust set of tools for businesses, web developers and integrators to create effective multimedia content management systems. The core functionality consists of an object repository including a powerful object oriented database, asset capture and indexing capabilities, search and retrieval and access security. Integrated with HP's OpenPix server the toolkit allows for quick deployment of powerful interactive imaging solutions." The link is image.hp.com It appears that both companies view this as a mutually beneficial partnership: From the Warp press release: 'Access to HP's worldwide resources for promotion and distribution will greatly increase our ability in partnership with our System Integration partners, to bring Digital toolkit-based solutions to the market place' From the HP press release: 'Our relationship with Warp 10 is an important step in our plans to aggressively seed the marketplace with the best internet imaging solutions'. I believe the above statements and the fact that Warp 10 is listed in the HP press release entitled 'Image Rich Content on the Web to Make Online Storefronts the Next Big E-Commerce Opportunity for Business', support the idea that HP will be using the Warp 10 technology and it is reasonable to believe that the toolkit has been validated as useful. Please excuse my naivette (sp?), but when you think about it HP would seem to possibly be a logical leader in Internet imaging, as they have vast experience and knowledge on how to transmit data from the computer to images on paper. I'm not sure if that argument holds water or not, but an alliance with a logical leader would be ideal. Just a thought. The question is, how will revenues be generated, and what kind of margins are there? Has anyone asked this of the company? Regarding your first two points, their expenses aren't really zero. In the latest quarter they were between 300,000 and 400,000. In prior quarters they were in the millions. Their website indicates that they have 20 employees. I'm not sure how many are developing the products. They produced other products which appear to have been slow to catch on, and I apologize but I don't know or understand the ATM vs non-ATM issue. It would appear however that the development has been primarily in the past, and now their main goal would be to sell the products. I'm curious about their other products. Warner Brothers and others had some complimentary things to say about their Warp-Res and Warp-Accelerator(I think that's the right one), but the revenues have been very slow to build, such that most investors have given up. I wonder if this is a situation where others are outselling them or the market is just slow to develop. Does anyone know? The comments on Warp's web page about having no direct competitors and being poised to become a leader in a market estimated at 5-6 billion would support the idea that the market is slower to develop than anticipated, since if the market was already exploding we would see it in Warp's revenues if they have little direct competition. At the same time it is one of those claim that sounds so outrageous you have to wonder if their claims have any real value? Why is the market slow to develop? Are bigger competitors gearing up for an explosion in growth that will leave Warp a dwarf? How does the HP announcement fit in to the strategic plan? With the explosion in internet everything, this announcement would seem to be only good news. The question is how good? Wish I knew more. Ted