nokomis...
I bought some short term calls on JNPR today because I knew they would blow away earnings...with that said I'm looking at MCDT growth numbers and their expected to earn more than JNPR 2000 w/120% growth 4 years going forward...plus 11 mil float until split(JNPR sells at $200 with 2 splits)....what do you think of MCDT?
JNPRNet income was $58.1 million, or 17 cents a share, compared with a loss of $1.59 million, or 1 cent, a year earlier. Revenue surged to $201.2 million from $29.6 million.
MCDT...The company lost 2 cents a share in 1999, but is expected to earn 25 cents in 2000 and 38 cents in 2001, according to analysts surveyed by First Call. The stock trades as MCDT near 133.
-EMC...technology and management...
MCDT... (Deals with IBM,MSFT in last few weeks among many others)
MCDT article
Company Finds A Home
For Data On Networks
By Thomas M. Kostigen
Investor's Business Daily
The computer age is a wonderful thing, mostly because it saves all that paper handling. But computer data still need to be stored somewhere, right?
McData Corp. bets its corporate life that it knows where, how and why. McData provides high-performance switches and software to connect servers and storage systems. As local area networks, wide area networks and the Internet require servers to transmit data, they need somewhere to store it.
“The whole area’s projected growth is 17% to 18% over the next four years,” says Shelby Seyrafi, analyst at A.G. Edwards. “(Storage area) switching is projected to grow 85% over the next four years. And McData, which plays in the director class, or higher end of (storage area) switching, is expected to grow 120% over the next four years.”
“Information is the heart and soul of industry today,” says John McDonnell, McData’s chief executive. “Data warehousing and Web servicing didn’t exist a few years ago. These people need storage.”
Connections have been the way to attach channels with storage units. McData uses fiber optics, and the industry is headed in that direction.
“The legacy architecture has been replaced by fiber switches and directors,” Seyrafi said. “It’s the new architecture that’s taking off.”
Seyrafi says that storage devices used to be attached to servers, but storage management has become more complex. He says more companies are using storage area networks.
McData’s products are designed to be flexible and grow with high-end systems. McData is in the catbird’s seat, Seyrafi says.
“The components in the director class are the higher end of the market,” Seyrafi said.
Brocade Communications Systems Inc. and McData are the two biggest industry players in the storage-area switch market, Seyrafi says. Brocade is McData’s rival in director switches and has followed its path into fiber channels as the industry moved away from the old legacy architecture. And Brocade recently moved into McData’s turf in the director class.
Seyrafi expects McData to keep the lead in that class of the market for at least six to nine months.
Other rivals such as Gadzoox Networks Inc. are focused on different segments of the storage area switch market or are trying to adapt to the new fiber architecture, where McData is placing its bets.
“We feel that fiber is really the way of the future, especially in regional and metropolitan areas,” McDonnell said.
Seyrafi sees storage area growing from $500 million today to $3 billion in three years. A recent study by Dataquest predicts a $4 billion storage area switch market by 2004. It’s an industry that’s growing fast.
That means companies such as McData have to manage expectations and serve the market. It also has to anticipate other needs and changes in technology.
“We are always looking at new technologies,” McDonnell said. “And there is always concern about delivering the right products.”
“In the switching space, we are looking at speed enhancements,” McDonnell said. “Our customers are trying to tie it all together.”
“Our ambition is to expand and to enter the entire enterprise market,” McDonnell said. “It’s our ambition to be a worldwide leader.”
For the second quarter, the company earned 5 cents a share, compared with a 1-cent loss the year earlier. Sales climbed 168% to $56.5 million. The company lost 2 cents a share in 1999, but is expected to earn 25 cents in 2000 and 38 cents in 2001, according to analysts surveyed by First Call. The stock trades as MCDT near 133. |
