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Technology Stocks : XYBR - Xybernaut -- Ignore unavailable to you. Want to Upgrade?

To: Crusader who wrote (2607)	5/13/1999 5:54:00 PM
From: Bill Fischofer	Read Replies (5) \| Respond to of 6847

XYBR Trip Report I spent yesterday meeting with a number of people at XYBR headquarters in Fairfax, VA. The purpose of this post is to summarize what I learned as it relates to XYBR as an investment. First, I have no idea what numbers will be posted for 1Q99 or any other quarter. I did not ask for nor did I receive any non-public financial data. The market has told me not to expect much for the first quarter so I am not. I can report, however, that XYBR management is very confident in their repeated assertions that they will achieve $40 million in revenue this year and I continue to believe that we will see real confirming evidence for that belief in the current (2Q99) quarter. I did get to try out the MA IV and its associated peripherals and can vouch for the quality of these units. I also got to see and hold an IBM microdrive and it is obvious that this tiny device (and its successors) will have a major role to play in the evolution of wearable computing. The mood at XYBR is upbeat and everyone down to the receptionist has stock options, so they are clearly motivated to see this company be successful. The people are putting in 10-12+ hour days and are clearly very busy. For example, I spoke briefly with Steve Newman who had to run and catch a plane to New York for a 9:45 PM meeting that evening. I was very impressed with Ed Newman as a man of vision, ability, enthusiasm, and intense loyalty to his people and to the long-term investors in XYBR. I was also impressed with the background and experience that folks like Dave Schweppe, VP of Marketing, and Hussein Sallam, VP of Engineering, bring to XYBR. I did not get to meet with Jay Yass (VP of Sales) as he was out selling, so I could hardly complain. On the subject of patents, I spoke with Jim Ralabate, Mike Jenkins, and Ed Newman on this subject and I am not at all concerned about XYBR's patent position or their ability to license them on terms favorable to XYBR. I am not concerned with TELT. I am not concerned with ViA. I am not concerned with IBM or anyone else. The characterization that was given to me is that on a scale of 1 to 10 Xerox's patents were an 8 and XYBR's are a 13. Ed Newman is convinced that they are good enough that they could forcibly exclude everyone from the wearable market and own it themselves entirely if they wanted to, but that a broad licensing strategy will both accelerate the arrival of the wearable age as well as allow XYBR to remain focussed on future innovations rather than building up their own "bricks and mortar" infrastructure as an integrated computer manufacturer. I think he is making the right decision in this regard. Finally on the subject of XYBRW (since I know that this question is of great concern to many here) I asked Ed Newman point blank what the story was on them. The unvarnished truth is that no decision concerning the possible extension of the warrants has been made nor will one likely be made before the June board meeting. Uppermost in making this decision will be consideration of what is in the best long-term interests of all Xybernaut investors. It is obvious that Ed has little patience with daytraders but cares greatly about those who are investing in the company for the long haul, including those who have chosen XYBRW as the means for that investment. He asked me if I knew what the distribution and duration of warrant holders was and I told him I did not but that that at least a sample of that information was probably obtainable. Being a good CEO he delegated that task and so I have a request of all XYBRW holders. As everyone here knows I choose to use my real name in posting here, however I respect the right of others to avail themselves of aliases at their discretion. To help provide statistical input to Ed, please post here or (if you prefer) e-mail me at wtf@adelphia.net with the number of XYBRW you hold and how long you have held them (use an average figure if necessary). I have no idea how XYBR will use this information but I will summarize it and forward it to them. Any information sent me will be held in confidence. To set an example, I will disclose that I hold 2000 XYBRW which I have held for approximately eight months.