NENG: Network Engines, Inc. Message Board

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Technology Stocks : NENG: Network Engines, Inc.

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To: Amboy Charlie who wrote (110)	12/24/2003 9:05:11 AM
From: Howard Salwen	Read Replies (1) of 186

Season's Greetings.. The annual report says that the OEM agreement is very important because it is very important. The company has been steadily reducing its dependence on the EMC business by closing deal after deal. I think that a year ago EMC was 80 percent of the revenues. It is now around 50 percent. (Please feel free to correct my numbers. These are just my opinion). The Microsoft Exchange deal announced recently will continue this trend. In any case, the announcement about reduced margins applies to a fraction of the profits from just a fraction of the EMC business which is just a fraction of the total revenue stream. Death is not around the corner! I think the market has just used the announcement as an excuse to bring the stock price down to a more realistic level. It should bounce back to a level that is half way between 11 and 4, i.e 7-8, in the coming months IMHO. And about the commodity business: Of course they are in the commodity business. It is all about manufacturing efficiency, distribution power and customer responsiveness. It is not about developing new PC chipsets or hard disk drives...

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