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Technology Stocks : Network Peripherals (NPIX) can Lead FastEthernet market???
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To: Noblesse Oblige who wrote (116)10/1/1997 9:23:00 PM
From: slob   of 174
 
Hi NO, Do you expect a turn-around sometime in the near future?

I read the latest warning and the solution scared me! There is talk of increasing R&D spending even though by any measure R&D spending is out of control. At $2.3M/Q, for, R&D NPIX must have about 50 engineers working for them. This should allow them to complete at the very least $100M in new product designs per year at above 50% Margin. Instead we hear that margin is down AND sales are down. What has R&D been doing?

R&D has only three functions in my mind 1) Design products that keep the production section working at full capacity. 2) Design new products for growth markets. 3) Design products which increase Margin.
I would score NPIX R&D about 0 out of 3!

I guess I should count my blessings that they identified Marketing as a black hole. When Margin is 40% marketing needs to be less than 8% NOT 36% as in NPIX's case.

Anyway, I'll pass on buying this puppy until I see major design wins. This company reminds me of ZCAD in 96/97.

Slob
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