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Re: Well zippidty do da, boys!
>>>Did you see today's action and today's big story?<<< - Meme
Yes indeed! I heard that ELON was going up this morning but didn't know why. Could hardly wait to find out. Now I don't know quite what to make of it. Our tiny Echelon one of only 13 companies to meet with the President? This could be HUGE!
Dick
Well zippidty do da, boys!
Did you see today's action and today's big story?
Echelon Demonstrates Energy Conservation Solutions to President Bush; Win-Win Solution for Consumers and Utilities
June 28, 2001 11:01:00 AM ET
WASHINGTON--(BUSINESS WIRE)--June 28, 2001--Echelon Corporation ELON, a leading Silicon Valley technology company, met today with President Bush and his advisors to show how advanced technology can help manage the country's growing energy challenges. Ken Oshman, Echelon's chairman, president and chief executive officer, demonstrated energy management applications such as those highlighted in the National Energy Policy. Mr. Oshman showed how homes, buildings and factories networked with the company's technology platform can enable them to use energy more responsibly and allow utilities to better match supply to demand.
Echelon's LonWorks(R) technology platform has already been used in more than 16 million devices worldwide, including such high-energy-use devices as heating units, chillers, boilers, production systems, and air-conditioning systems, among many others. Tying such devices to energy management systems affords consumers, energy producers, and service providers with the opportunity to actively manage power production and consumption to yield an optimum balance between conservation, production and convenience.
One of thirteen companies invited to meet with the President today, Echelon will demonstrate how LonWorks enabled smart devices in a home could respond to the real-time pricing signals from an energy provider to change their energy consumption. This model allows the consumer to specify his or her preferences for how they want the various devices in their home to behave as energy costs fluctuate and market forces work to automatically shift low-priority loads into off-peak hours. The utility is able to meet peak demands while reducing its overall cost of energy delivery, and the consumer saves money by moving low-priority tasks to times when energy is less expensive -- a win-win for the consumer, the utility and the country.
http://news.moneycentral.msn.com/ticker/article.asp?Symbol=US:ELON&Feed=BW&Date=20010628&...
Okay, now let me dream for a moment. Just recently Bush was handed a scientific report on ways for the government to reduce energy consumption. (Actually, he tried to squelch the report, but he's in a problem situation now.) Bush is trying to repair his image of being pro-oil/anti-environment. Wouldn't it be ever so cool if he was actually looking into new technologies that the government could implement so that he could look heroic!
Did you know that the government and big business are the biggest users of energy?
Aaah....ELON in every government building (sigh).
A girl can dream can't she? <G>
Meme
OT: Socket Communications
http://biz.yahoo.com/bw/010619/0456.html
The early adopters buying the Socket Bluetooth cards for connecting Pocket PC's to cell phones are going to pay $279.00 for the card! No way will the mass market pay $279 for a Bluetooth card when the Socket wired flash card works just fine. Then, get this:
"The Bluetooth Card included in the Early Adopter Kit has been tested with many Bluetooth devices, including both Nokia and Ericsson Bluetooth-enabled mobile phones. Limited quantities of these phones are becoming available for use with GSM networks in Europe."
What??? The damn thing won't even be available in the United States? I'm starting to feel better about having sold my SCKT in December. I'm beginning to think that this one is a long way out, and if they stick with that price, the Bluetooth card will never go.
DickMN
Tangential snippet......
Found this bit of news which doesn't mention AWRE, but could in fact have some relevance.
From Wall Street Journal
rip..
Deutsche Telekom Looks Toward
Expansion Into Broadband Services
By WILLIAM BOSTON
Staff Reporter of THE WALL STREET JOURNAL
BONN -- Deutsche Telekom AG's exit from the business of operating cable-television networks appears to leave a hole in its plans to tap the fast-growing market for broadband services.
The company said Thursday it will now focus on rolling out digital-subscriber-line technology, or DSL, to transform its basic telephone network into an on-ramp for high-speed Internet access to compete against cable TV. It aims to secure top-notch content for DSL and its broadband-wireless services based on the universal-mobile-telecommunication-services standard, or UMTS, which won't be widely available for a few years.
I am starting to think that the baby bells have now starved the CLECS out of existence, and that they will now start rollin' out DSL in ernest. Could of course be wishful thinking, but I've been underwater so long on this, my thinking is waterlogged.
glub,glub
Rollin, I think our AWRE may continue to see hard times. I just heard that 3COM said their dsl modem sales have been lackluster. :(
Now I am reading that Alcatel is getting out of the DSL business, Thompson is taking it over. The only glimmer of hope I can see is that now the baby bells pretty well have things going their way, in that they have starved the CLEC's out. I think they will start rolling out DSL on their own now, but again their glacially slow pace doesn't make for any sudden moves. Lucent may just jump into this space, as they have mismanaged everything else. Will just have to wait and watch.
One company I am watching in a different area that you may be interested in taking alook at, is INTD,, its been moving pretty steadily the last little while, and if all the things Al Domminick say are true, it has a pretty good future. They have a customer list like no other, and online bill payment is going to get big.
rollin'
Re: Spam pure and simple,,,
Rollin, I'm not quite sure what you're asking? Did you want me to delete your post? Queenbea?
And, BTW guys, ELON held up very nicely this week, did it not? Somehow it feels (my instincts) like it's poised to do a little more running. That being said, I probably just doomed it to dip. <G>
Rollin, I think our AWRE may continue to see hard times. I just heard that 3COM said their dsl modem sales have been lackluster. :(
Meme
Spam pure and simple,,,
Begging your royal pardon M'Lady,,, would you please put this in the dumpster.. This queenbea or whatever it is,,
Re: Okay, guys, what the hell was that?
Only found a couple things on Yahoo:
http://biz.yahoo.com/n/e/elon.html
http://www.thestreet.com/_yahoo/comment/talesinside/1447362.html" target="_new">http://rd.yahoo.com/finance/external/streetheadlines/*http://www.thestreet.com/_yahoo/comment/talesi...
http://www.fool.com/portfolios/rulebreaker/2001/rulebreaker010601.htm?source=eheyhopop001101&ref=yhoolnk" target="_new">http://rd.yahoo.com/finance/external/mfool/*http://www.fool.com/portfolios/rulebreaker/2001/rulebrea...
Kinda doubt that it was the Fool article since it came out at noon and the stock had been running since the open. It could have been a combination of that one and The Street article.
DickMN
Okay, guys, what the hell was that?
Not that I'm complaining, mind you, but I haven't had a chance to sign into MSN and see what that lovely little pop in price was all about. I happened to be on GO earlier, but their pitiful excuse for a money section showed absolutely no news on ELON today.
What gives? Mere enthusiasm for a potential energy play or what?
Speaking of which, Rollin how's Ballard doing?
Meme
Re: Meme's Biography in Pictures
You're cruisin' for a bruisin', DICK!
Meme
Geez,, I can't type I laughing so hard.
As to the link,, sorry, I thought it was a public page,, here is the article:
Web Washer
Silvia Sansoni, Forbes Magazine, 05.28.01
A lesson in selling Net-enabled appliances: Don't mention the Net part.
Giovanna Bolzonetti wanted a new Merloni washing machine because it handles cashmere and silk so gently. But it also connects to the Web. She was jazzed about the prospect of starting the delicate cycle from her office PC. "It'll redefine the meaning of housework," says the management consultant in Fabriano, Italy.
The humdrum appliance industry is sudsing at the mouth over the prospect of sexier Web-enabled wares. Whirlpool has a venture with IBM and Sun Microsystems. Maytag also has a deal with Sun, while GE has struck one with Microsoft. So far, though, the U.S.giants have only prototypes, like the Whirlpool fridge that orders milk and eggs when supplies run low.
Before these heavyweights start pitching Web washers, they should confer with the Italians. Last year Merloni Elettrodomestici of Fabriano sold more than 1 million networked appliances—mostly washers, but some ovens and fridges, too. That could double this year, says Merloni, Europe's third-largest appliance maker with 8 million units sold last year.It expects 80% of its product line to be Web-ready by 2005.
Its secret? Play down the Web thing. Merloni's $450 e-washer, Margherita 2000, looks the same as its regular washers and costs no more. Merloni hasn't promoted its Web prowess. "We don't want to scare people away," says Merloni's Mario Cipriani, a director.
Two years ago Merloni flopped in trying to sell the Margherita.com, a techier unit with a wireless modem and a $1,200 price tag. It sold 20 units.
The fear of a similar bomb stateside has the white-goods giants standing pat. "We could put something on the market tomorrow, but it would be too expensive and there would be no demand for it," says a GE spokesman. Whirlpool concurs.
Merloni has jumped in, eager to convert its growing base of Web washers into a lucrative subscription business. Service revenue is now 5% of Merloni's $1.3 billion in sales. Cipriani thinks that he can increase that to 30% by 2007. Later this year Merloni will offer a service linking appliances to a repair center that can peer into a washer's guts to see if, say, the pump isn't draining properly. For about $15 a month, subscribers can download cooking programs for Merloni ovens, such as a recipe for a cheese soufflé.
Yet another wired strategy:Merloni plans to give away washers and charge 50 cents a load, billed online to a credit card. By bundling maintenance and repair services in that fee, Merloni expects to generate $700 in revenue per machine over five years, compared with $450 if the machine had been bought outright. The real upside:Lease customers get a new machine after five years.
Some customers don't see the need for a digital lifeline. "My last washing machine lasted 23 years, and I didn't have to spend a penny for maintenance," says Renata Tiepolo of Turin.
Merloni spent only $30 million in five years to Webify its product line; Whirlpool spent a hefty $19 million in just a year. Merloni hopes to create a standard around its networking software. That's a stretch, but Merloni's Cipriani has a deep well of pride: "We are actually doing something," he says. "The others are just talking."
Re: Meme's morning workout
God I'm glad I live half a continent away.
You're damn right, bucko!!! Sheesh, I don't know which was worse, the one you decided not to post or the one you did!
Where the hell is my whip when I really need it? Rollin, did you forget to return it? <G>
Meme
Re: Not as sexy as the current topics,, however,
Could you cut and paste it, Rollin? I'm getting a registration form, too.
As for the beads, toss 'em. Besides, I hear you pipefitters make good bucks...a far more equitable deal may still be struck. LOL
Meme
Re: Not as sexy as the current topics...
Couldn't get the article, just a page with a form for signing up for Forbes. Didn't check into it, just assumed they want money.
DickMN (Too cheap to sign up)
p.s. - Notice Meme's hairy armpits in that workout pic?
<img src=http://members.aol.com/ceclausen/page2/pwpits.gif border=0>Meme's morning workout
God I'm glad I live half a continent away.
DickMN elong way away.
<img src=http://members.aol.com/ceclausen/page2/pwcoffee.gif border=0>Dick
Notice I got rid of the frame around the graphic in this one.
Never mind what my left hand is doing!
DickMN
Not as sexy as the current topics,, however,
Thought you might find this somewhat encouraging.
An approach to increasing the bottom line, but not necessarily the profile I would like to see.
First of all:
A lesson in selling Net-enabled appliances: Don't mention the Net part.
http://www.forbes.com/forbes/2001/0528/058.html
Then the press release from way back:
http://www.echelon.com/Company/press/1999/merloni.htm
rollin' elong
Dang Meme,, was accumulating quite a store of Mardi Gras beads, now I learn all is for naught.
Cute, Dick, real cute. Well, at least, you had some accuracy with the first one. <G>
As for the second, what do you think? I get drunk and flash for Madi Gras beads?
Geez, Dick, I've told you before, I'm much more higher priced than that. LOL
Meme
<img src="http://www.harrythecat.com/graphics/h/woman1.gif"> Our Meme, after FIVE Rum and DC's
<img src="http://www.harrythecat.com/Graphics/h/warrio10.gif"> Meme, after four Rum & DC's
Didn't Robert Burns write "To a Computer Mouse"?
This story should make old poets turn over in their graves, at least those who are lucky enough to be dead:
http://www.quote.com/quotecom/news/story.asp?symbols=WIRED:100&story=22267872
Dick
<font color=green>Think of the fun...</font>
Think of the fun you could have with that one. )
<input type="reset" value="Click to Delete Meme" g style="text-decoration: blink">
<font color=red>I'm just gifted! ☺ </font>
Meme- How about our deal? <G>
Hey you, Dick, yeah you buster! How'd you get so damn clever, huh?
That's pretty cool. What's even more interesting is that it displays in the title, but when I click on it to go to the site, I get nothing.
BTW, Prudential downgraded ELON today from a strong buy to hold because it reached their $23/share target. Of course, I'd have to say that $23 target wasn't exactly hard to miss. Then, again, I've got a handful of stocks that haven't recovered so well. (Shrug)
Meme
You bet I will dance, and before this is over, it will hit 100 several times.
rollin'
ps. very clever amigo!
<img src=http://www.penguindance.com/images/penguin5.gif> Us, when ELON hits $100
Down after the conference call.
I haven't listened to the call yet but CNN has ELON down 83¢ in after hours to $23.67. Mustn't have been a very rousing call.
DickMN
Well maybe the boss doesn't think this will be a high flying stock, but I'm not so sure events won't prove him wrong.
Should the ENEL build out prove itself, the endorsement for this type of utility monitoring will be overwhelming and all encompassing. Potentially this company could be a household name in ten years. My luck doesn't tend to run that way, but its a nice thought.
I think the move up in the last couple of days,, is a result of some folks realizing that ELON could be a good "energy" play.
With the number of new powerhouses, refineries, and gas lines that are being proposed the potential market for "distance control and monitoring" is enormous.
happy trails
rollin'
Up 24% in two days!
Conference call tomorrow (Wed 5/23) scheduled for 4:00 p.m. EDT, 3:00 p.m. CDT, 2:00 p.m. MDT. Echelon states that they will now be doing inter-quarter conference calls each quarter to update investors and analysts about Echelon. We're up 24% in two days this week. We had a similar run about the time of the last inter-quarter conference call, just a few days after ELON bottomed at $8.00. Oddly, that call was only about six weeks ago. Today's close was the highest since December 11. We held on to the last run with hardly any profit taking, hope the same thing happens now.
I find it a little odd that ELON is recovering so nicely since Oshman stated in the last call that ELON will never be a high flying stock. He sees it rather as a stock that will hopefully have slow, sustainable growth. Sure hasn't been the history of it. Right now I'm just happy to have one stock in my portfolio that I'm profitable on. Hope ELON keeps making me happy.
Here's a link to the Wednesday conference call:
http://tm.intervu.net/template/smirror/ivtemplates/ccbn/2001/may/23/ipc-ccbn-elon-05232001-50417-rl-...
Dick
I hear the president calling for ELON to become the nations new way to conserve energy,,, well sort of,,,http://www.whitehouse.gov/energy/
Though of course he doesn't mention us by name, I think lots of folks will be paying a bit closer attention to what is what in the energy monitoring business. Couldn't be a better fit.
Tons of new powerhouses going in, all of which want to be monitored closely, lots of new high pressure gas lines, again all of which need careful monitoring.
The only thing that really bugs me right now is that I didn't get more at the very lowest,,,, sorry couldn't resist.
rollin'
Re: Good Conference Call
>>>I must say, however, quiet little Rollin seems to have been making a tidy little bundle buying up stuff on the bottom.<<<Meme
Yes, indeed. I think Rollin45 should change his name to Hoover45. He's become our resident vacuum cleaner, sucking up the stuff people like me are losing in our margin calls. I made the mistake of buying on margin a year ago and now I'm up Shit Crick. The fire sale of a lifetime and I can't buy a thing. Oh well, society needs to have a poor class, too. At least I get to contribute some balance.
DickMN
Re: Good Conference Call
Well thanks for keeping up our sad little thread here, Dick. No doubt, I've been terribly remiss. I didn't even know ELON was or had reporting/reported till I read this. I did, however, ponder its pop.
(Sigh) That's what happens when one decides to bury their head in the sand for awhile. I couldn't stand to follow my portfolio. For me, that's the best way so as not to freak out entirely.
I must say, however, quiet little Rollin seems to have been making a tidy little bundle buying up stuff on the bottom.
So what, Rollin?!?! Ya doubled your last ELON bet already, didn't you?
Damn pipefitters. <G>
Meme
Good Conference Call
I finally got around to listening to the webcast of the Echelon conference call. I hope that the throngs of ELON shareholders reading this board had a chance to listen to the call. It was supposed to be available through yesterday, but I just checked and found it's still available tonight.
Although Oshman is not a world class orator, the conference call was the best I've heard from Echelon, and it got better as the call progressed. Oshman talked about the technology, the market in general and the way he thinks it might be benefiting Echelon, and what the competition is doing and not doing. A loose-canon investor fires pointed questions at Oshman and the answers are interesting. I'm more optimistic about the stock after listening to the webcast.
DickMN
Not too bad....
Maybe not the pop I was hoping for, but on a down day in the techs Echelon has almost doubled it's low of $8 just 7 trading days ago, on April 4. The close of $15.80 feels pretty good. Hopefully the profit taking in the last couple hours of trading is all we'll see. These days I'll take whatever I can get. :-/
DickMN
Elon up after hours...
CNN has ELON up $1.94 or 13% to $16.55 in after hours trading. Island has them at $16.00. I'll go with CNN, thank you.
DickMN
Echelon Breaks Even, Meets Estimates
Sure am glad to see Echelon met Wall Street expectations, and those were not lowered estimates! I get frustrated watching this company, it's worse than watching grass grow, but right now they're the only company I own who even has a positive sounding earnings report. If this report doesn't pop the stock, then I don't know what it will take. Congrats to anybody who was able to load up at the <$10 price.
I won't have time tonight to listen to the webcast but it's supposed to be available til April 19 on the Echelon website.
DickMN
Conference Call
Here's another site where we can access Thursday's Conference Call:
http://biz.yahoo.com/cc/6/4556.html
DickMN
Press Release.....
(Thanks rollin45 for this link)
http://biz.yahoo.com/bw/010410/0371.html
Tuesday April 10, 9:09 am Eastern Time
New Software from Echelon Adds Versatile Networking to Smart Devices
LonWorks® Networks and the Internet Now Accessible to Any Microprocessor-Based Appliance
SAN FRANCISCO--(BUSINESS WIRE)--April 10, 2001--Today, at the Embedded Systems Conference and Exhibition, Echelon Corporation (Nasdaq:ELON - news) announced software that enables any product that contains a microcontroller to quickly and inexpensively become a networked, Internet-accessible device.
The software is royalty-free for developers when used with select Echelon transceiver products. Limited only by the imagination, the type of device can range from simple home appliances, thermostats, and security systems to sophisticated factory-floor or building control equipment.
By leveraging the existing 8, 16, or 32-bit microcontroller and software inside a device and adding only a tiny amount (less than 2.5K) of additional code, Echelon's ShortStack(TM) software enables manufacturers to add substantial new functionality to their products while preserving their past development investment. With ShortStack software, devices can communicate with other smart devices over the Internet and across LonWorks® networks, the world's leading open standard for networking everyday devices. The potential advantages resulting from such a network are numerous; devices can become part of integrated home, industrial, building, and transportation systems, and manufacturers can add remote diagnostics, maintenance, monitoring, and control services to their products.
``Whether the goal is reducing peak electric loads by remotely turning off air conditioners and electric dryers or controlling house lights from the browser in your cell phone, the demand for intelligent, networked devices is growing rapidly,'' said Ethan Cohen, senior analyst of energy & utilities at Aberdeen Group. ``Echelon's new software makes it easy to add networking to an existing product without redesigning it from scratch. Obtaining such a change in the functionality of a device used to require a total engineering redesign. ShortStack software changes the economics of value engineering and can literally extend the manufacturing life of a product family, potentially saving a company millions of dollars in the process.''
``Billions of microcontrollers are shipped each year and embedded into everyday devices all around us,'' said Michael Tennefoss, Echelon's vice president of product marketing and customer services. ``In many cases, companies such as home appliance manufacturers have invested years into ensuring that their controller hardware and software is reliable and meets applicable safety agency guidelines. ShortStack software allows these manufacturers to preserve their significant hardware and software investments, enjoy all of the many benefits of LonWorks networking, and even extend the useful life of a product family. For example, embedding Echelon's ShortStack software and PLT-22 power line transceiver into an air conditioner, electric meter, or furnace enables these devices to be monitored and controlled from anywhere within a home. Add a Cisco-certified i.LON(TM) 1000 Internet Server or an Echelon dial-out solution, and those same devices can then be monitored and controlled over the Internet -- via a utility service center, a cell phone, or your browser at work.''
Beta versions of ShortStack have already been released and integrated into both white goods and electric meters. Potential ShortStack users include large white goods and consumer electronics companies; air conditioner and furnace manufacturers; and producers of home controls such as thermostats, alarm systems, electric meters, lighting systems, and pool and spa controls.
ShortStack software is available for immediate limited release, with general availability planned for the second half of 2001. The developer's kit includes the ANSI C source code for the ShortStack API; a driver; an example application; and documentation. There is no cost for the ShortStack developer's kit and no royalty charge for the ShortStack software when used with Echelon's standard power line and free-topology twisted pair transceiver products.
Echelon is actively working with microprocessor and microcontroller manufacturers to promote ShortStack use by high-volume customers. Interested manufacturers should contact ShortStack product marketing manager Rich Blomseth (rich@echelon.com).
Copyright © 2001 Yahoo! Inc. All rights reserved.
Copyright © 2001 Business Wire.
Way out there,,,
"
I don't know anything about "ALon home gateway" but it must be way out there as it doesn't return even one hit on Google."
Or one could say way around there, or down there,,, in that this is an Australian company,, Astralon,, or Australon?? lol,,
The rumors are being denied by A.G.Edwards and Prudential,,so we shall see,
Did in fact buy a little bit at 10.9,,,,,,,,,off the low, and I suspect a bit of feet dragging by the broker,,
rollin'
Echelon Earnings
Echelon will report earnings after the close on Thursday, April 12. A conference call/webcast will be held one hour after the close and can be accessed on the Echelon website. I don't know whether the webcast will be archived for later access, but they usually are for a few days at least.
DickMN
So much for ELON
What the heck happened to Echelon? It hit $8 today before closing at $9.31. The volume was 1.4 million shares compared with the 30-day average of 300,000. There are postings on other boards about rumors that the ENEL deal is falling apart, but other postings saying the company denies it. No hard news that I know of. Anybody hear anything?
Sure hope nobody listened to my advise about raising their $12 limit order on this one.
DickMN
RE: Finally a bit of news that could portend...
I don't know anything about "ALon home gateway" but it must be way out there as it doesn't return even one hit on Google.
Dick
Finally a bit of news that could portend good things. The energy crisis is real and coming like a freight train, Echelon could provide some help. The ENEL deal is, I am sure, being closely watched, here is another company that is going to try for a partial solution.
http://biz.yahoo.com/bw/010330/0059.html
As an aside, the deal with CAT, is a step in the right direction as well.
rollin'
(OT) Cambridge Silicon Radio
Three new press releases:
http://www.cambridgesiliconradio.com/nf/pr039.htm
http://www.cambridgesiliconradio.com/nf/pr040.htm
http://www.cambridgesiliconradio.com/nf/pr041.htm
DickMN
Re: Another insider buy of considerable proportions:
I'm a little surprised that Oshman holds more of the stock than Markkula, since Echelon is really Markkula's baby. I'm even more surprised that it's such a huge difference, five million for Oshman to only 1½ million for Markkula. That works out to 13.4% of the outstanding shares for Oshman, and only 4.4% for Markkula, the founder of the company.
Granted, Oshman is doing all the work, but I've never seen anything quite like it. Maybe Billy Gates should give Mike a call and have a little talk with him.<G>
DickMN
Either of them make my paltry portion look pretty silly.
Another insider buy of considerable proportions:
http://www.nasdaq.com/asp/Holdings.asp?Selected=ELON&symbol=ELON`&FormType=Form4&strFilt...
I am not sure if this means anything, but one has to assume the January buy is a resounding vote of confidence.
rollin'
Power Crisis: Elon to the rescue?
An acquistion that will surely help and a bit of analysis by A.G.Edwards from the Motely Fool Board:
Echelon Acquires ARIGO Software GmbH
SUNNYVALE, Calif.--(BUSINESS WIRE)--Feb. 12, 2001--Echelon Corporation (Nasdaq:ELON - news) today announced its acquisition for cash of the privately-held ARIGO Software GmbH, a Beckum, Germany-based developer of LonWorks® hardware and software products. Founded in 1996, ARIGO specializes in LonWorks power line devices, gateways, and Web-enabled connectivity products.
``ARIGO's experience and expertise in LonWorks power line designs and Internet connectivity expands Echelon's development teams in these core areas,' said Ken Oshman, Echelon's chairman, president and chief executive officer. ``The acquisition of ARIGO gives us a world-class LonWorks engineering team that strengthens our European development resources as well as a suite of products that complements Echelon's existing offerings. The addition of these expert resources underscores our focus on our customers and partners across the European community.'
``We are very excited to add such a high-caliber group of engineers to our team,' added Peter Mehring, Echelon's vice president of engineering. ``ARIGO's engineering group includes some of the best power line and software design engineers available. They have the knowledge and experience to work with Echelon's existing engineering team to create high-volume, robust products for the residential, commercial, and industrial markets.'
Echelon does not believe that the acquisition will have a material impact on full year 2001 reported earnings per share.
A.G.Edwards comments
by: soib45 02/14/01 10:31 am EST
Msg: 73701 of 73708
Main Points:
- Inexpensive acquisition of proven engineering team that is fully up and
running on the LonWorks platform and power line technology. Very rare
combination.
- ARIGO is a middle component OEM oriented firm that does not compete with
existing Echelon customers.
- Echelon quickly established a strong local engineering knowledge base in
Europe, which is around 40% of revenues.
- No material revenue impact this year but will impact product development
and cost reduction plans going forward.
What on the surface is a very minor transaction in turn is a very solid
strategic move on the part of Echelon. To acquire a group of engineers that
are familiar with LonWorks, Power line technology and based in Europe is
almost too much to hope for. Add to the equation that this group has been up
and running for 3 years with viable products shipping to customers we have a
solid building block for future development and products cost savings.
Echelon has long stated that its goal was to bring new products to market and
drive cost out of existing ones. Management fully understands the challenges,
which has always been time and person power. Investors have been wondering what
the company was going to do with the $150 million investment from Enel
and true to its word Echelon is finding creative, cost effective ways to
acquire talent.
ARIGO was founded in 1996 as a spin off of sort from IBM to develop power line
devices and connectivity. Today the company has a broad line of products from
very simple plug in sockets and sensors to Internet enabled LonWorks gateways.
We feel that some of the products have great potential and augment existing
Echelon offerings. Over time those material to forward opportunities will
remain and the rest will be eliminated.
We continue to believe Echelon is the company to watch in smart building for
the home and commercial market space and the recent pullback in the shares
represents a good entry point. LonWorks has established itself as the de
facto open standard for networking everyday devices in commercial and
residential building, transportation and factory automation industries.
Just received confirmation my tax stuff had been accepted by the Feds and the State, so armed with new money, will be looking to add to my shares.
rollin'
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