Network Appliance Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance

NTAP 111.56

+2.1%

Nov 28 9:30 AM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Mike Wilhelm who wrote (6391)	2/9/2001 6:27:56 AM
From: DownSouth	Read Replies (2) of 10934

NTAP planned to run at 60% gross margin & 20% operating margin; which is about where they are at right now. Are they planning on a lower margin structure now? And if so why? This warning or concern about decreasing gross margin appears in every cc since 1996. The reason is simple. As the scalability of filers increases, the relative content of disk drives to software, and head-end hardware increases. Disk drives are a low margin commodity. THus the bigger the filer, the lower the gross margin. NTAP has successfully negated this GM erosion by increasing software content and offering new head end units (cpu boxes) for customers to upgrade to. They always plan for lower GM, but also work to prevent that from happening.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next