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Technology Stocks : Visual Networks (VNWK)

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To: DD™ who started this subject5/22/2004 10:09:13 AM
From: Byron Angel  Read Replies (1) of 367
 
Router sales increase

Router sales were good in Q1 according to figures compiled by Dell'Oro Group, a Redwood City market research firm that specializes in analysis of the networking and telecommunications industries. "This was the best quarter-over-quarter growth in more than three years, and may be an early indication that businesses are finally loosening their purse strings to expand and upgrade their router-based networks," said Shin Umeda, principal analyst with Dell'Oro Group in a written statement.

sanfrancisco.bizjournals.com

VNWK benefits directly from sales of Cisco routers that include VNWK technology. In his presentations at investment conferences earlier this week, Larry Barker used as one of his success stories the example of a bank that has Cisco routers that have VNWK technology. The bank was getting very poor performance from their network and were thinking about adding more bandwidth to try and fix the problem. Instead they were able to use the visibility into their network provided by VNWK technology to come up with a much cheaper solution to their problem.

In general, increased sales of routers indicates that the data networking market that VNWK sells their products into is picking up and that they can expect improved market conditions to boost their sales.
Byron
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