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Technology Stocks : DRIV (DIGITAL RIVER). Get in on internet IPO.

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To: RikRichter who wrote (429)11/29/1998 3:08:00 PM
From: M. Frank Greiffenstein  Read Replies (1) of 3198
 
OT: NTPA

Form Herb Greenberg, permabear:

Netopia (NTPA:Nasdaq). This dog? If you've never heard of
the company, and haven't kept up on the news, that would
be an appropriate reaction. Until last week the company was
known as "the old Farallon," a Macintosh networking
company that lost its spark with the demise of the Mac. But
the new twist to the story that has last week the company
sold Farallon, allowing it to become an Internet company.
One of its units sells networking routers for very small
businesses, but the big push is for its proprietary software
that automatically sets up Web sites for small businesses.
"People don't realize that we were doing $20 million in sales
on the Internet side," says CEO Alan Lefkof.

So, where does the iMac come into play? Lefkof, no dummy,
decided to capitalize on the iMac hype by rolling out a
consumer version of the "no assembly required" Web site for
the iMac. Netopia makes money off the small-biz version by
charging $20 per month to host the sites; it'll make it off the
consumer version by selling advertising on the consumer
sites. If the iMac version is a hit, the company plans to roll
out a consumer version for PCs.

The added kick: The Internet biz' gross margins are 70%,
Lefkof says; Farallon's was 35%.

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