Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Aware, Inc. - Hot or cold IPO? -- Ignore unavailable to you. Want to Upgrade?

To: Elroy who wrote (4503)	10/28/1998 12:02:00 PM
From: Melissa McAuliffe	Read Replies (1) \| Respond to of 9236

Elroy, Thanks for your input. Well, I doubt that it's .01...but have no idea what it might be. Does anyone know how much rmbs is getting from intc for their royalties? This might at least give us a starting point. I'd also like to have an idea of the potential market. Is this one chip per pc? I think it is but I'd really like to get this clarified. I used to think that until I saw someone mention 60M homes as the potential market. Thanks.

To: Elroy who wrote (4503)	10/28/1998 12:40:00 PM
From: Scrapps	Read Replies (1) \| Respond to of 9236

During the last five years, Aware has established itself as a leading provider of full-rate ADSL and DSL-Lite technology. Of the handful of companies in the world that have developed DSL technology, Aware believes it is the only provider of both standards-based full-rate ADSL and DSL-Lite technology. As the ADSL market has matured and as consolidation has occurred within the industry, Aware believes that there is a significant market opportunity for it as an independent provider of standards-based DSL core technology. To address this enormous opportunity, Aware has embraced an intellectual property licensing strategy for its telecommunications business. Aware licenses its intellectual property and software to: 1) semiconductor manufacturers, 2) captive semiconductor manufacturing organizations within larger companies, and 3) equipment companies who incorporate Aware's technology onto specific integrated circuit platforms. Aware's technology enables these customers to manufacture, sell or use integrated circuits that are an integral component to DSL equipment. To support its licensing activity, the company markets its technology to telecommunications, data communications, and personal computer equipment manufacturers to encourage them to design Aware technology into their products. The company also markets its technology to service providers to encourage them to deploy new broadband services based on Aware's technology. It is Aware's objective to make its technology and software widely available so that DSL services can be cost-effectively and easily installed by service providers, enabling true high-speed, consumer Internet access. Aware believes that the market for its DSL technology is potentially enormous for the following reasons: There is a killer application for DSL – true high-speed, consumer, Internet access. Every phone line represents a DSL technology opportunity. A single DSL chipset solution cannot meet the specialized requirements of all the various types of DSL equipment that will be deployed in the real world. The requirements on power consumption, programmability, performance, size, port density or multiport capability and backward compatibility for chipsets used in DSLAM equipment, switch line cards, digital loop carrier equipment, next-generation multi-service access equipment, personal computers or standalone modems are very different. Equipment-specific chipset requirements offers Aware an opportunity to supply technology to each of the chipset manufacturers that target specific market segments. Aware licenses technology and software solutions for numerous DSL technologies including, full-rate ADSL, DSL-Lite, and VDSL. Aware is constantly enhancing these solutions by improving their useability and adding features. The company sees opportunities in licensing upgrades to its technology to both existing and new customers. The value proposition Aware offers its technology licensing customers is compelling. Based upon its patent portfolio and years of real world development and deployment experience, Aware can: Offer the proven ability to make its partners' chipsets interoperable with chipsets from other vendors. Reduce its customers' business risks by lowering technical development uncertainties, reducing time-to-market, and ensuring cost effective solutions. Ensure its customers' compliance with the full-rate ADSL standard and the emerging G.lite standard. Revenue Model Aware's revenue model, which is a product of the preceding strategy, is Contract revenue which consists of: 1) up-front license fees for technology transfers and 2) non-recurring engineering revenue for development efforts during product development. Royalty revenue on each chipset that incorporates Aware's technology and software. Product revenue on sales of DSL equipment, such as technology demonstrators as well as development systems that are useful chipset development tools for our strategic partners and their customers. aware.com