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Technology Stocks : NCDI - Network Computing Devices

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To: Mark Orsi who wrote (3366)12/21/1997 4:13:00 PM
From: Mark Orsi  Read Replies (2) of 4453
 
Regarding statement of 200k NCs Shipped:
From ZDNet: zdnet.com
December 23, 1997
NC Shipments

Direct Response From Our Readers

"You do a disservice to all concerned repeating such patent nonsense of Network Computing Devices shipping 200,000 NCs in 1997. This would mean revenues to NCD of over $150 million from NC's alone in its first year -- more than their total revenues. What happened to their base X-Terminal business?

NCD has duped you into being part of their misinformation campaign by mixing their old, dumb X-terminal shipments with their NC shipment numbers. Please offer a clarification.

G. Gupta"

Editor replies:
Sales of NCD reached $100 million for the nine months ended September 30.

So it's likely that their sales for the full year could exceed $134 million, not that far off from your estimate.

Also, IBM is one of their biggest OEM customers, meaning that IBM is getting the NCs from NCD at substantial discounts off the list prices. In addition, NCD has publicly stated that it has shipped more than 400,000 thin clients through OEMs like IBM, Sun and Novell.

When everything is said and done, it's likely that NCD could ship 200,000 units by the end of 1997. As a result I decided to include Lorraine Hariton's estimate from NCD in my story.
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