Ann: FY2010 results , page-110

Hi DirtyHarry

Another way of looking at this is that many large companies are lazy or in a hurry...easier to buy established processes and infrastructure than establish yourself, particularly given that INT is tiny and has large tax losses.

Also, market penetration/acceptance of embedded networks appears to be at a very early stage. More competitors will legitimise the product and accelerate acceptance IMO. During such phases in other industries, there is plenty of business for everyone and margins are good. It is when the market is awash with competitors chasing a small number of remaining unsigned clients that margins get low, but this would seem a long long way off for embedded networks. Also, when INT gets to a mature stage, given that contracts are long term, hopefully this means there will be plenty of cash to be extracted during the mature phase of the cycle.

In short, I am less worried about competition, and in fact see competition as an endorsement of the concept, and possibly a strong buy signal.

Anyway, just a different way of thinking, perhaps.

Cheers
PViews