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Strategies & Market Trends : Market Gems:Stocks w/Strong Earnings and High Tech. Rank -- Ignore unavailable to you. Want to Upgrade?

To: alice simmons who wrote (35681)	4/22/1999 8:44:00 AM
From: eden	Read Replies (1) \| Respond to of 120523

BYND up to 32 3/4 this morning---received my list by e-mail

To: alice simmons who wrote (35681)	4/22/1999 8:44:00 AM
From: ayahuasca	Respond to of 120523

For AWRE fans Aware May Live Up To Web-Mania-Induced Valuation - Analysts By FRANK BYRT Dow Jones Newswires BOSTON -- Shares of Aware Inc. (AWRE) have been riding a rocket over the past seven months, rising more than twenty-fold. And if some developing scenarios play out, it could live up to its current stratospheric valuations and more, industry analysts said. The value has risen primarily because the Bedford, Mass.-based company is expected to play an integral part in delivering high-speed Internet connections to residential consumers over existing phone lines, via its asymmetric digital subscriber line, or ADSL, chipset technology. The company Tuesday reported first quarter earnings of 3 cents per share, versus a loss of 7 cents per share in 1998. First Call estimates were for 2 cents per share. First quarter revenues increased 115% to $4.3 million, compared to $2 million for the first quarter of 1998. If Aware's technology continues to be embraced by the telephone and computer industries, as some analysts predict, the Aware licensed chipset could become a standard on most new personal computers. The technology is already on board certain models being offered by Compaq Computer Corp. (CPQ). Meanwhile, it's been a gut-wrenching ride for investors. Shares bottomed at 4 1/4 on Sept. 11 of last year, and rose to an all-time high of 87 1/8 last Tuesday. On Monday, it was one of the markets big losers, tumbling 32.1%, but it recovered somewhat Tuesday, gaining 16.3% to 53 1/2. "The momentum of DSL is strong and growing and we're very optimistic about the technology we've developed and the customers we've engaged with and others we're talking to" as potential customers, Michael Tzannes, president and chief executive officer of Aware, told Dow Jones Newswires. He said there are certain markets in the U.S. and Canada where telephone service providers already offer consumers the DSL technology. It's not expected to be offered in the Northeast for several months. Tzannes said Aware's chief customers include Analog Devices Inc., Lucent Microelectronics, Infineon Technologies (formerly Siemens Semiconductors), and ST Microelectronics. "We see a very strong foundation with our customers" as they are among the industry leaders, he said. Those companies use Aware's analong chipset technology and software "end up making the engines for DSL service," he said. "Our technology allows a speedy and reliable connection for this service. Aware gets both contract fees and royalties from each chipset that is sold. "We just completed a profitale quarter and we're confident this trend is continuing in a positive manner," said Tzannes. He said first quarter royalties were more than all royalties of last year which "reflect record sales of chipsets based upon Aware's DSL technology. Tzannes said that "the DSL solution can ultimately be very cost effective versus a (standard) modem and I believe that a faster internet access would be very welcome for the type of internet access people do today and will also empower the internet" to grow its content. That is because the higher processing speed and bandwith of DSL will provide video and multi-media applications to the residential user to an extent not currently available. And since the telephone providers won't have to send a worker to install a line and switch box at each home, it will ultimately be more cost effective, he said. He said the telephone companies can be expected to begin offering a wider range of services, based on the potential of rapid internet service because they are facing so much competition in areas of their traditional services. The allure of Aware is that the firm is expected to be the deliverer of "the last mile" of interconnectivity between the internet and the consumer via either the telephone line or the cable TV hookup, said John Rooney, an analyst for Hornblower &Weeks. Rooney said he still has a "buy" recommendation on Aware because he expects it has the potential to reach $125 per share, though he adds that traditional measures of stock evaluation currently appear fruitless for Internet-related stocks due to their stratospheric valuations. Rooney added that Aware's shares "ride of a liftime," has been exacerbated by the number of momentum players in the telecommunications and internet sectors. Charlie Pluckhahn, a telecommunications analyst for Stephens Inc., has a similar perspective, expressing confidence in the company, and difficulty in determining fair value by accepted methods. "I raised the target to 57 (per share) from 46 on March 31 and it almost immediately (jumped past that) and so I washed my hands of a valuation once it got over 60. "I just thought people were embracing a very optimistic scenario, based on the rollout of ADSL in the market," Pluckhahn said. But he adds that if a significant number of computer-makers decide to put it into their PC's modems "then Aware's numbers could be much higher than what we have and that supports the argument for it being in the 80s to 100 (per share)."