More Fibre Channel related industry buzz:
Data General Posts Profit
techweb.com
<<Data General Corp. last week reported net income of $3.7 million on revenue of $383.7 million for the quarter ended Sept. 26. The results are below those for the year-ago quarter, in which the company earned $17 million on revenue of $404.1 million. But after disappointing earnings earlier this year, Wall Street analysts did not expect the company to rebound so quickly. Data General says the turnaround was due to the solid performance of its Fibre Clariion storage and Aviion server lines. >>
Note - Full Fibre Channel based systems now represent over 40 percent of current DGN storage business based on last weeks earnings report.
From the DGN thread:
<<DOES DATA GENERAL NEED A PARTNER? (todays BW)
Message 6223063
Data General (DGN), which skidded to 7 on Aug. 31--down from 17 in early June--is back on the radar screens of investors who play the takeover game. They are betting that Data General, which has risen to 13, is being pursued by the likes of Storage Technology or Sun Microsystems. What is the logic behind this reasoning? They figure Data General is a compelling buy both on fundamentals and as takeover bait.
''DGN is an undervalued player in the attractive enterprise [data] storage market,'' says Don Young, a technology analyst at PaineWebber. Data General is too small, he adds, ''to stand alone.'' It ''needs to align, partner, or merge with other industry players.'' He figures that Data General has a breakup value of $23 to $40 a share.
The company's Clariion storage division alone is worth $15 to $22 a share, estimates Young. And the company's other major business--the Aviion server unit--''appears to be in the best strategic shape,'' says Young, who figures it is worth $11 a share.
PaineWebber investment strategist Edward Kerschner picks Data General as one of his takeover bets in technology. He says other possible buyers include Hewlett-Packard and IBM. ''With DGN trading at just 20% to 30% of revenues, the stock is attractively valued,'' says Kerschner. DGN spokesman Jim Dunlap declined comment. >>
Neil |
