Amalgam of high points from recent brokerage reports from Deutsche Banc, Unterburg Towbin, and Suntrust Equities
re NTAP
the Orca acquisition gives NTAP technology for the next-generation NAS product, which involves clusters of servers that can communicate memory to memory, allowing direct transfer from one memory to another, bypassing the server entirely. Orca is the key to NTAP future. The
first filers with this capacity will come out toward the middle of next year
Innovations like this are why NTAP is the leader, and why will remain so. Innovative tech is the key to NTAP's edge in the NAS space
fundamentals are accelerating, w/ demand strong and continuing to grow, and product pipeline stronger than ever. Coming out with both high end systems, and a 15K departmental product. This should help maintain hi growth on a larger base
software sales for storage management have high margins, ramping very strongly
still very little actual competition (tho lots of noise from competitors). Sunw new NAS product is not gaining traction in the market. EMC's product is good, but priced way above current price point for NAS. W/ its proprietary architecture, believe NTAP can maintain significant barriers to entry of competition
conservative booking of revenue. Does not book sales to SNI until SNI has sold the product to customers (avoiding the problem that took LGTO down)
Balance sheet strong and lots of cash while opps to use it continue to expand
ntap is THE fastest growing storage vendor, growing faster than VRTS. Growth as high as NTAP extremely rare. *Are fewer than 30 companies of meaningful size growing revs and earnings >75%* |
