Ken, Common sense will tell you that if company A has a minority % of a market and is growing far more slowly than company B that owns the majority of a market, company A is losing. Heck, even the dog enterprise business that LU has grew....
Also, if you were to invest 10 dollars into a pool of 100 that was later diluted by a factor of 2 or 3, you would no longer have the same % of that pool. Again, common sense. I do not need a link...
My remark about the 10G was that LU has a product that is selling which obviously means that they did not miss the market. NT has the leading market share, much like CSCO in the enterprise. Fortunately for LU, the market is big and NT is incapable of meeting demand. Since there are NTcustomers that cannot get product and are unwilling to wait 6 months, LU will get some business there as well as their own historical customers. you also should be awre that the 10G market was relatively small to this point and that expenditures did not explode until the last 2 quarters, meaning that any financial losses to LU were at a minimum until then.
LU will do fine. As Mr. Fun has pointed out, the growth for NT is a bit warp[ed since revenues were flat last year, giving NT an easy compare. We shall see where NT is in the December and March quarters next year when it comes to growth. the same cannot be said for CSCO (and btw, NT did not have 55% yoy revenue growth...you should try not to overstate things yourself).
tp |
