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Technology Stocks : All About Sun Microsystems

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To: JDN who wrote (63065)6/2/2005 8:04:20 PM
From: sixty2nds   of 64865
 
13:40 HILL Dot Hill Systems: Sun Micro may consider acquiring HILL - Susquehenna (5.00 -0.51)

-Update- Susquehenna believes that SUNW's acquisition of STK should not negatively impact HILL, since HILL addresses the low-end disk storage for Sun. In fact, given this acquisition and SUNW's stated intention to be a consolidator, firm believes Sun may consider acquiring HILL, which generates 85% of revenue from the SUNW OEM relationship. STK's disk products are from Engenio (LSI Logic), which Sun already uses for mid-range disk storage, so the rationalization of product line would be related to simplifying the mid-range disk offering. During its conference call, SUNW indicated that the customer overlap for STK's Engenio disk and SUNW's Engenio disk is limited.
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