Q's & A's regarding ABEW's current status...
1) "Now that we are certified for that TI chip, does that mean that ABEW will only be used in some TI products, or do they sell their chips to a wide variety of mfgs?"
ANSWER: The chip market is a multi-billion dollar industry. Nowadays, most electronic devices you buy contains at least one chip inside to help it function. Most likely your coffee pot, your alarm clock, your refrigerator, your thermostat, your smoke alarms, even your toaster has a MCU (micro control unit) inside of it. (And that list doesn't include the Medical Industry, the Industrial Industry, the Auto Industry, the Defense Industry, etc.)
A "chip" can be one of the the following:
1) a microprocessor
2) a radio antennae
3) a microcontroller
As stated before, Texas Instruments has cornered more than 50% of this multi-billion dollar chip market. There are HUNDREDS of manufacturers that buy chips from Texas Instruments to develop their products.
2) "Since the Alliance is so sticky about their certifications each step of the way, will we be constantly facing new cert requirements as new products come out? My concern is that 1.0 got obsolete before it even got off the ground and I'm hoping that the same doesn't happen with 1.1."
ANSWER: The 1.0 spec was not conducive for large scale applications and the Alliance decided to revise it with the 1.1 spec that has a much better acrchitecture and is geared towards the Home Automation Industry. (The 1.1 spec is also called the Home Automation spec.) The Alliance plans on coming out with new specs every three months to address a certain type of Industry. Each new spec that comes out will be 100% compatible to communicate with the previous specs before them (with the exception of the 1.0 spec of course).
The next spec to be announced will be called "ZigBee Pro" and is designed to focus on the Industrial Industry. Although it will be 100% compatible to communicate with products from the 1.1 spec (Home Automation), all ZigBee participants (including ABEW) will need to be recertified with that new spec. because it involves a whole new application. Incidentally, ABEW has been chosen to be a "Golden Unit" for the upcoming new spec, the ZigBee Pro!!!
3) "Does this cert mean that the co can start signing up a bunch of licensing agreements with cos that may have been waiting in the wings? If so, wouldn't that mean that the co can generate an almost instant revenue stream that being on the OBB wouldn't affect one way or the other? I know that the OBB will have an effect on our pps, but I'm very interested in the co's ability to generate revenue based on it's product."
ANSWER: Yes. I believe there are a great number of companies that have been "waiting in the wings" for ABEW's software to be certifed. However, I don't expect a flood of License Agreements to come in until Texas Instruments makes an official announcement that their new MSP430 F4618 chip has indeed been certified with ABEW's software.
Furthermore, those manufacturers that are interested will most likely need a "sample kit" to test ABEW's software and TI's new MSP430 chip with their specific products. The good news is that TI has already sent out over 500 sample kits to many of their customers that have requested them.
Lastly, the main importance of getting onto the OTCBB is to attract more investors and get our long term financing from the Investment Bank that we have contracted with.
Regarding our revenues. Here is some quotes taken directly from Gene on ABEW's web site. Read them closely...
Msg # 244 Posted By: Gene Sharer
21 November 2006 04:00 EST
This message is reply to msg # 241 by Dan.
WE do not expect any further revenues derived from the 1.0 spec. We will not be waiting until mid 2007 to see any revenues either. The significant revenues will begin in mid 2007.
[Once again, let me repeat the SECOND sentence for you: "We will not be waiting until mid 2007 to see any revenues either."]
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Msg # 247 Posted By: Ken Olinick
22 November 2006 08:12 EST
This message is reply to msg # 244 by Gene Sharer.
Gene, does that mean you expect revenues in the 1st quarter or are we are recieving them now? Ken
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Msg # 248 Posted By: Gene Sharer
22 November 2006 10:42 EST
This message is reply to msg # 247 by Ken Olinick.
Begin in the first quarter after certification if the ZigBee Alliance holds their schedule. Will not ramp up until mid year 2007.
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Metaldragon...Hope this answers all of your questions.
abew4me
Disclaimer: All comments are just my opinion and should NOT be considered as factual.
(Voluntary Disclosure: Position- Long; ST Rating- Strong Buy; LT Rating- Strong Buy)
