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Technology Stocks : Phoenix Technologies (PTEC) -- Ignore unavailable to you. Want to Upgrade?

To: burt l seifman who wrote (3082)	1/19/1999 7:09:00 PM
From: Jules B. Garfunkel	Read Replies (1) \| Respond to of 3624

All, For those of you who may listen to the replay of the conference call and believe that my questions to Jack Kay were cut off, (for the second time in the last two CCs), let me state, I was cut off. However, for the second time, Jack was courteous enough to call me right after the conference call to apologize and to tell me that it was inadvertent. During my call with Jack several items were discussed. I would like therefore, to share those items discussed with all my friends here; ---While R & D, as a percent of revenue was up 9%, Jack assured me that the company was still on plan and that R & D is slated to be around 27% of revenues by the fourth quarter. He reiterated that R & D, as a percent of revenues, would be down for the year. Had R & D been kept flat in 1Q99, vs. a year ago, (as I had hoped), it would have added an additional $.04 to earnings before taxes, or $.11 instead of the $.08 reported, before the restructuring charges. ---Prices for PTEC Desktop BIOSs, on the low end at least, were firming. It was hoped that not only would there NOT be a decline in prices for the full year, but we could even see an increase. ---The new customer wins for Phoenix with Toshiba, Hyundai, and other Asian electronics companies, places PTEC in very good position to provide modules for Network connectivity in the future. Such connectivity modules might be used for connecting to the Internet.... Microphones, Speakers, Digital cameras, TV set top boxes, and in the future microwave ovens, refrigerators or any other household appliance that might benefit from being connected to a Network. Jack is still reluctant to give any revenue projections for these new markets, but common sense tells me this will be huge. ---While I again criticized Jack for being, in my opinion, ultra-conservative, he reiterated that he was more concerned with improving the company's credibility, and would not provide optimistic forward statements until that credibility, with Wall Street analysts, was reestablished. The bottom line of my conversation with Jack was that I was convinced of his sincerity, and I will stick around with Phoenix for at least another quarter or two. Jules