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

To: semi_infinite who wrote (6131)	4/25/1999 11:03:00 PM
From: froland	Read Replies (1) \| Respond to of 9236

What is your point regarding Nigel Cole? Froland.

To: semi_infinite who wrote (6131)	4/26/1999 12:53:00 AM
From: Tim McCormick	Read Replies (1) \| Respond to of 9236

Ray, I guess I was lucky to hear the Q and A. There were only three questioners, although they each asked many questions. Charles "Pluckem" at Stephens Inc. asked most of the questions. He got Aware to say that their business plan projects a DSL market of 3.5M CO modems and 8.5M CPE modems in 2000. Aware expects 35% of the CO market and 50% of the CPE market. Aware said they receive a different royalty payment structure from each of their customers. Initially it is around 10% of the DSL chipset cost and declines toward 5% of the chipset cost in volume. The subject of wether Aware's customers can second source chipsets was also discussed. Apparently the only barrier to this is design in time. It appears Siemens has already second sourced with TI. The other two questioners were buyside institutions. I guess all the other analysts were quiet or not present. Maybe they are pissed about "Pluckem" seeming to be the favored hypester. I believe Aware is in for a couple of difficult sequential quarters, as a hiatus in revenue should begin with the decline of contract revs. while royalty revs. are not ramping yet. Aware also has lost the subleasing revs. which are in other income. Then in 2001, growth in royalty revs. better accelerate greatly to overcome the absence of tax loss carryforwards. If Aware earns .30 PS in 2000, they will become taxable. Tim