Network Appliance Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Network Appliance

NTAP 109.43

-0.3%

3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Chris O'Connor who wrote (367)	9/16/1998 12:16:00 PM
From: Leeza Rodriguez	Read Replies (1) of 10934

Chris, I did listen to the last Q conf call. My overall impression was that the company is following a stable growth track. IMO, this is going to be a slow steady grower. In the conf call the company outlined the characteristics of the US customers vs. the International customers. Basically they stated that for International customers, the driving force is the resulting IMMEDIATE savings in bandwith costs when caching is used. They estimate the payback period for International customers to be 10-14 weeks. This is because bandwidth is so expensive in Europe and abroad. In the US bandwidth is cheaper , and the payback is 12+ months. While this cost savings is certainly important to domestic corporations and ISP's ,NTAP managment pointed out that the real imptetus for caching in the US is that caching produces faster response times in the browser and can assist with some security issues. In essence, US ISP's and corporations are (at the moment) much more concerned with keeping customers happy. Good caching results in faster response, which results in happy customers==> higher Revenues, increased market share==> higher EPS ===> happy shareholders==>everybody loves each other ;-) I was delighted to hear this confirmation because I was writing about these concepts a few months ago. On the details, I only scribbled down a few: DSO decreased to 57 from 62 ---->good turns (inventory) increased to 9.6 to 9.4 ----->good The ISP customer base now represents 20% of revenue. 30% of products shipped have Fibre Channel components 175 new accounts Hope this helps. -Leeza Rodriguez

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next