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Technology Stocks : Network Appliance

NTAP 117.12

-0.3%

2:01 PM EST

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To: kas1 who wrote (4054)	8/17/2000 6:07:55 AM
From: DownSouth	of 10934

NTAP does two things: 1) manages the analysts expectations; 2) manages its backlog. So it is not deferring earnings, except in delaying shipments if the revenue is not needed at the end of each quarter. That is what they did Q4 when they reached 120%. Then they shipped those orders Q1, which helped make the 124% number, but also caused the book/bill ratio to be less than 1. It is not "downplaying excessively good results"; it is setting the street's expectations and keeping a close look at performance on a daily basis so that good results are not a surprise. CSCO accomplishes this by being able to perform a trial close in less than 2 hours. They don't have to wait until the quarter is over to know what the quarter is likely to look like--to the penny! I'll betcha NTAP can do the same thing.

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