Dell will bring NTAP $15 million in revenues in 2000, and $125 million in revenues in 2001, according to the analyst at Merrill Lynch. This could be quite an underestimate given Dell's growth and the growth of the overall storage industry. They also set a price target of $72 for NTAP. :)
Here's an interesting article:
>>>Network Appliance gains on Dell deal
By Binti Harvey, CBS MarketWatch
Last Update: 12:32 PM ET Nov 5, 1998
NEW YORK (CBS.MW) -- Network Appliances Inc. bounded 15 percent higher after the company sealed a marketing deal with Dell Computer Corp. Thursday.
Beginning in 1999, Dell (DELL) will market Network Appliance's (NTAP) technology for Microsoft Corp.'s (MSFT) Windows NT and Windows 2000 operating systems.
The companies will jointly market "filers" networked file servers that accelerate users' access to files by offloading them from general-purpose computer servers.
Analysts responded positively to the news, including Merrill Lynch, which upgraded Network Appliance to "buy" from "accumulate." Analyst Steven Milunovich said, "Although the fiscal 2000 EPS impact of the Dell deal may be modest, profit expansion beyond that could be significant."
Milunovich expects the deal to rake in a $15 million sales benefit for Network Appliance in fiscal 2000, and approximately $125 million in fiscal 2001. Milunovich also expects Dell's sales to expand Network Appliance's participation in finance and retail markets.
Bankers Trust Alex. Brown analyst Philip Rueppel believes the deal will benefit both companies, providing Dell with enhanced storage offerings, while offering Network Appliance greater presence in the Windows NT market and access to the fastest-growing portion of the server market.<<< |
