jlivea, since you asked, my take on JNIC.
JNI's FC products are primarily sold in "industrial strength" configurations to manufacturing, high volume networks, and financial houses:
>>End-users of our products include Amazon.com, Boeing, Charles Schwab, DaimlerChrysler, Federal Express, GTE, Lexis Nexis, Mobil, Morgan Stanley and US WEST Capital Funding.<<
>>Our customers typically have extremely low tolerance for system down time. We design, manufacture and test our products to exceed the high standards of quality set by our customers. Each component is designed and tested to perform in environmental conditions that are more extreme than what our customers will encounter in normal use.<<
They have been operating successfully as a subsidiary within a consolidated group. Operating as a separate company requires systems and personnel. Managing that transition to independance while managing sales growth can be tricky and may lead to choppy quarters.
>>We have recently experienced a period of rapid growth and expansion which has placed, and continues to place, a significant strain on our resources. Unless we manage such growth effectively, we may make mistakes in operating our business such as inaccurate sales forecasting, incorrect material planning or inaccurate financial reporting, which may result in unanticipated fluctuations in our operating results. Our management team has had limited experience managing such rapidly growing companies on a public or private basis.<<
They have a "hardhat" piece of a fiercely competitive fibre channel market. Maintaining SAN sales growth means joining the roster of challengers to the likes of Sun, EMC, IBM, HP. And they compete with EMLX, QLGC, and INPH in controllers and with LSI in ASICs.
That's a tough row to hoe (or a tough ho' to row). I wouldn't touch it unless I was sure it was gonna be worth at least $84 someday and that I can stand choppy earnings. And right now, I'm not that sure that it will and that I can. I'll check back into it over the next 2 quarters or so though. Always dumpster diving.
Good luck with your endeavors,
Douglas |
