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

To: bob who wrote (3540)	8/21/1998 12:12:00 PM
From: Snowshoe	Respond to of 10309

CBS MarketWatch: "Wind River blows away earnings" cbs.marketwatch.com

To: bob who wrote (3540)	8/21/1998 1:04:00 PM
From: Peter Church	Read Replies (1) \| Respond to of 10309

Some notes from the Conference Call: I2O "I2O looking bullishly. The analysts estimates are conservative." Ron said, "Expect low to single digit million dollar I20 related revenues this year." The MSFT OSM is released. I2O is about a half year behind projections made 2 1/2 years ago, but the project is otherwise on track. Intel expects to sell 10 million i960 chips in the next 2 to 3 years. Then there is Strong Arm, etc. Java Embedded Java needs some consolidation before taking off. It is in the very early stages still. There is lots of engineering effort at SUN with WIND's help. The promise is there. Services Services are a growing percentage (now 25%) of revenue. This a customer support intensive business. Ron thinks the reduction of margins will be offset by higher Run Time margins. The goal is 60% gross margin. Growth and Sustainability It is difficult to maintain growth rates when a company gets bigger. Ron pointed to the upside from I20 and the Zinc initiative. The graphics and internet business look to be a new opportunity. WIND has made large staff and engineering investments (added 52 engineering and sales staff) and maintained profitability. Executing well; know the market well. "We will get more than our fair share of the market." MSFT MSFT has done a lot of advertising, but their product's reliability is questioned in the marketplace by engineers. WIND's customers "want" WIND to win this one. New Design Wins Nothing major. Jerry mentioned imaging (cameras and printers, office automation) as a trend with "networks of design wins". He couldn't talk about some of them, eg. Polaroid. Consumer market is growing Why has the stock been flat? Market is generally nervous. I2O was late. MSFT and FUD.