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

To: Mark Brophy who wrote (3284)	5/3/1999 11:04:00 AM
From: Jules B. Garfunkel	Respond to of 3624

Mark, I think your P/E of 20 is a little light in view of the better prospects ahead for PTEC with Merced product's providing higher ASPs for Phoenix BIOSs. The last I knew, Intel's Merced chip would be announced in September/October time frame, ramping to bulk shipments by early 2000. I think this is what Jack was anticipating when he said that we should see improved revenues, for PTEC next year, resulting from the high R & D costs we incurred over the past two and a half years. Perhaps IBM's announcement today of their G-6 mainframe, (which was one month ahead of schedule), will now motivate Intel to accelerate their announcement of Merced. Regards, Jules

To: Mark Brophy who wrote (3284)	5/3/1999 4:31:00 PM
From: John B. Dillon	Read Replies (1) \| Respond to of 3624

Mark, Thanks, that was the feedback I was looking for. "A small cap company that can't grow revenues or earnings will only fetch a 20 P/E, so the stock will rise only to 12." Right now I will take 12! Jack has been bitten by being too optimistic and I am glad that he learned his lesson. With Asia, the switch to low end PC's and DEC going away it is very hard to predict the future. However, Compaq ships all of their home and laptop computers with PTEC BIOS. IBM just started to ship their laptops with PTEC BIOS. Both of these contracts were announced last year, and took a lot longer to ramp up than I expected. Compaq and IBM didn't even show up in last quarters top 5 customers. I expect these OEM's will ramp up and hopefully we will see some revenue growth. jd