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Technology Stocks : Network Appliance
NTAP 117.26+1.1%Dec 5 9:30 AM EST
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To: kas1 who wrote (3063)4/12/2000 10:02:00 AM
From: DownSouth  Read Replies (1) of 10934
 
kas, NTAP discusses its margin concerns every quarter. It goes like this:

Increasing storage capacities and larger average filer capacity sold affects gross margin because disk drives are a commodity item and have low margins in the industry. To counter this effect, NTAP is continually providing new software options and promoting the sale of those options to its customers. Software margins are extremely high.

So far, this strategy has been effective, as gross margins have been relatively stable quarter to quarter.
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