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

To: Theo Karantsalis who wrote (3275)	5/2/1999 10:56:00 PM
From: John B. Dillon	Respond to of 3624

Theo, In response to your question regarding why PTEC has not participated in the high tech rally: 1. They had a credibility problem. PTEC missed their #'s a couple of times and got shot. Jack is now more conservative. 2. They didn't see the switch to low end BIOS and Award took that market. They bought Award and now own the low and high end. 3. INTC was years late with the Merced chip. They are just starting to see revenue from the Merced, but in a couple of years the revenue could be significant. 4. PTEC had huge R&D expenses. They are getting R&D under control as we saw with last quarter. 5. Their market cap is under $250,000,000 so a number of mutual funds won't even look at them, and small caps have lagged the large caps. Both of these issues could change soon. 6. PTEC has had problems articulating it's business plan. Laurant is very articulate and I believe he can get PTEC's message out to the investment community. 7. A number of people have been predicting the demise of the BIOS. The ASP for the Merced chip will be higher than anything PTEC has ever seen and the BIOS is not going away. PTEC claims that BIOS pricing for the low and high end are stable. I believe that PTEC is in a much stronger position than they ever have been. They now own 70% of the BIOS business and have two high growth divisions. They are buying back their stock, have cash in the bank, no debt and a low PE. jd