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To Whom it May Concern,
Network Peripheral's sales are ramping strongly, due nearly entirely
from the growth in fast ethernet products, where the company is a
significant factor in the mid-range market for hubs. Fourth quarter
sales should probably exceed $17 million (vs just over $14 million
in the third quarter, and approximately $12.5 million in the second),
and profit margins should be up slightly despite the fact that the
company continues to invest in infrastructure.
Look for 1997 earnings to be well above "Street" consensus numbers of
about a half a buck a share, with a hockey stick formulation for the
numbers as you get through the year.
During calendar 1997, fast ethernet products should exceed 50% of
total revenue, and given the consolidation in the industry, you
shouldn't be surprised if the company is acquired once it becomes
obvious that their products are selling well. Remember, good tech-
nology is only half the story, if that. Marketing counts, and NPIX
has limited distribution still, despite the fact that they are willing
to spend to grow that aspect of their business. Another company, with
better distribution in place, could really run with the ball here.
Congratulations on your patience. It looks to me like you are on the
cusp of being paid for it. |
