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Technology Stocks : All About Sun Microsystems

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To: The Ox who wrote (8641)	3/28/1998 3:18:00 PM
From: E_K_S	Read Replies (1) of 64865

Hi Michael - I estimated some conservative numbers and was very surprised at the possible per share contribution from the storage area. I think it is possible for Sunw to capture 10% to 20% of the NT multi-user storage market. As you stated,it will take some time for them to ramp up but the article I posted stated that SUNW's product was 6 month's ahead of EMC's solution. Assume a $4.8 Billion industry (FY 1998) market and Sunw can capture 20%. This is $960 million sales for 1998. The net profit margin should be between 20%-30%. Assume a 25% net profit margin. This translates to $377 million in new product line earnings for 1998 which is equivalent to $0.64 per share for the year ( or about $0.16/share per quarter ...just from the NT storage business). If this is correct, this new business line represent 29% of Sunw's earnings and the analysts and the company really has not discussed this too much. Where did I go wrong? EKS

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