Another interesting post I found about JNIC on another board.
Gentlemen and Ladies.....
I have followed JNIC years before the IPO and know their business and customers well. Trust me when I say, 98% of the discussion is based upon inaccurate information and hype. So, please please go back and read the original S1/A filing in October 1999 describing the business model, business plan, and future directions. All subsequent 10-Qs have re-iterated this to a large extent. The business model has not changed.
I would like to highlight just a few of the numerous errors being touted as FUD (fear, uncertainty, and doubt) .....
First: From the very beginning through today, JNI has derived very little direct revenue from SUNW. Let me say this again --- JNI sells very little directly to SUNW. Nothing new (NN)
Second: Appx 80% of JNICs revenue is derived from sells to customers, distribution channels, and OEMs that utilize SUNW systems and technology. Again, nothing new (NN).
Third: Most of JNIs revenue comes from high-end enterprise system sales. Computers that required 24x7x365 uptime. These include banks, shipping companies, critical on-line transaction systems. These systems are typically Unix based with a majority from SUNW. (NN)
Fourth: Most of these enterprise systems include tremendous amounts of storage. Many/most of this storage is NOT purchased from the computer manufacturer. (IE: A Sun 10K is usually supported by a third-party storage array and NOT principally by SUNW). (NN)
Fifth: The high-end storage providers (EMC is the biggest), recommend and install JNICs product be used when they install their storage system with the customer -- because JNICs product is highly robust and reliable in this 24x7x365 environment. (NN)
Sixth: SUNW announced at least 4 years ago their intention to phase-out SBus in favor of PCI. The process is complete with low-end systems. Enterprise-class systems make life-saving major changes much more slowly. Hense, the long delay. Expect another 2 more years before SBus is really gone. (NN)
Sixth: At least 2 years ago, JNIC started selling PCI adapters into the Sun enterprise-class systems. With the final release of their new ASIC, Emerald, the transformation is complete. EMC currently sells and supports their enterprise storage systems with both SBus AND PCI using both JNIC SBus and PCI HBAs. (NN)
Seventh: This is the most important. JNIC success is principally due to its software drivers. The driver set links the critical interfaces with the HBA and the computer. JNICs drivers are identical with SBus and PCI. (NN)
Eighth: On October 16th, JNI announced great earnings and the expectation of even greater earnings for Q4. Terry Flanagan, CEO also announced his desire to retire as soon as a suitable replacement was found. (NN)
Bottom line - the 10Q information touted as 'new' is pure BULL. The news writer who just found this (a year late) and touted it as new information is incredibly stupid. The reaction to his incredibly stupid remarks is reminiscent to last quarters Emulex hoax. My personal belief -- he must have also shorted JNIC and got caught upside down. But because he is a 'news writer' -- he can get away with it.
Mes
Disclosure -- On Friday, I became a small-time JNIC investor - again. |
