Failure to clearly communicate the benefits of D2D and D2P

ParkerVision has not yet defined the technical advantages and resulting applications of its wireless technology it calls D2D and D2P. Based on the Q&A from ParkerVision’s Special Event Conference Call on June 28, 2005 and the ParkerVision 2Q 2005 Conference Call on August 8, 2005, ParkerVision CEO Jeff Parker has not adequately explained the benefits of his company’s technology. More recently, when asked about the addressable market, Jeff Parker said on November 7, 2005 that “we will be giving a lot of additional information on our web site over the coming months that will help people get their arms around what is it that we do that's unique and beneficial and that is not achievable -- at least not in practical terms that we're aware of -- by using the old legacy architectures.”

Jeff Parker’s commentary on June 28, 2005 and August 8, 2005 highlights ParkerVision’s confusion about its D2D and D2P technology. The uncertainty about the readiness of their technology was confirmed on June 28, 2005 when Jeff Parker said OEM’s “are also giving us extremely good information to understand how to evolve with the technology. Some of which we can evolve very rapidly and give them even in our early chips, some feature benefits that frankly that even we didn't contemplate but that are very achievable because of our architecture.” This, however, undermines the amount OEM’s will pay ParkerVision, if at all, since they are creating technology based on ideas suggested by the OEM’s. Also, if the technology is currently ready to sell, why did ParkerVision completely revise their web site in October 2005 and then promise in November 2005 to provide “a lot of additional information on our web site over the coming months that will help people get their arms around what is it that we do?”

ParkerVision, Inc. Special Event on June 28, 2005 / 4:30PM ET
George Shield - George Shield Inc. - Analyst
When I spoke earlier today with one of your people, who was trying to explain to me that your PA does not require a transmitter -- but it isn't a transmitter.

Jeffrey Parker - ParkerVision Inc. - CEO
Yes, OK. So let me ...

George Shield - George Shield Inc. - Analyst
So I'm trying to -- how a two-way cell phone or anything like it works without a transmitter and a PA that isn't transmitter.

Jeffrey Parker - ParkerVision Inc. - CEO
Sure. So, very -- kind of, I think -- if you like in -- very briefly, give you just a feel on that. So today, the cell phone or any wireless device that uses a transmitter would take a data signal and inject it into a set of circuit that would convert that data signal to an RF carrier with data analysis modulated to represent the data.

And then that would typically go into a separate power amplifier and then that goes out through the antenna and there can be various filters along the way. This could be done in multiple stages versus typically -- can be done in one of transmitter, could be done in two, but if the chain of events that occur.

What our technology has done and what has got the attention of these OEM's, is we have figured out a way to unify into a single operation taking the data signal and converting it directly to an RF carrier at the power level for a mobile portable product that you desire.
And so it embodies the function of a transmitter and the function of a power amplifier in a single unified operation. And the benefit of that is that it gives us extremely reliable wave form quality.

It is very small. It eliminates tons of circuits and supporting components unlike a transmitter, when you are coming out of a transmitter on the output side it's to radio signal, may not be a real high powered one, but it's a radio signal so there's a lot of matching components and art to that, to match to go into the amplifier. We don't have that, that's completely gone now.

One of the problems that these chains that I described to you that traditionally you have, is that you got to take the power output from the transmitter and the power input to the power amplifier and they have to work within a certain range or you end up distorting the radio signal in ways that is unacceptable to the OEM.

And so they typically can't get all of the benefit of the power amplifier. They have to do is back off the total capacity. And that by the way doesn't necessarily mean it uses less power consumption. It still uses the same power consumption. They are just not putting out as much power. So this is one of the reasons that the efficiency levels of these chains not particularly impressive. We don't have that.

So there is just a whole laundry list of things that we've been able to remove, eliminate, don't have to deal with and as we are getting into the bylaws with OEM's and they are asking us can you help me improve this, change that, eliminate something else? They are also giving us extremely good information to understand how to evolve with the technology. Some of which we can evolve very rapidly and give them even in our early chips, some feature benefits that frankly that even we didn't contemplate but that are very achievable because of our architecture.

So I hope I answered your question without giving too much details. So it's not a transmitter plus the PA its just data in, single operation, take it right to RF, add power on the channel you desire. So it's multiple operations in one step.

ParkerVision 2Q 2005 Conference Call on August 8, 2005 / 4:30PM ET
John Bucher - Analyst - Harris Nesbitt
Jeffrey, a question for you on the samples that you indicated would -- the targeted samples that will probably be going out later this year. Do you have the relationships in place to get those out? Or are those relationships just now coming together? Can you just talk a little bit about that?

Jeff Parker - ParkerVision, Inc. - CEO
Sure. No, we have the relationships in place now. You know, in previous announcements and dialogues we announced that our D2P chips, at least the initial ones, would be run on the IBM FAB, on an IBM fabrication plant. And that's where those first samples will come from. Although, even on our existing prototypes we have some of our own unique semi-integrated silicon that came from our previous runs on a Texas Instruments FAB. So, John, it's kind of a combination today, of custom silicon we did at TI, and some other supporting discrete hardware around that and then tomorrow, from the IBM FAB.

John Bucher - Analyst - Harris Nesbitt
Great. That was really the question, you were able to leverage the ongoing relationships you've already got there.

Jeff Parker - ParkerVision, Inc. - CEO
Absolutely.

John Bucher - Analyst - Harris Nesbitt
And then, can you talk a little bit about the applications? You indicated that there are some specific targeted applications. Can you say specifically which radio technologies? And then also, to the extent you can, the types of devices that you think that the initial wins might be in?

Jeff Parker - ParkerVision, Inc. - CEO
Yes, I wish I could share more with you. That's a great question, but these OEMs are providing a lot of information to us in confidence, and have specifically asked us not to share outside of our conversations, where they're intending to use these first components. So, at this time I'm going to have to say that I wish I could tell you more, other than I can tell you that the OEMs we are talking to are tier one companies. And as such, maybe that gives you some indication of the type of applications they might be thinking about.