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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Ted The Technician who wrote (6920)	9/21/1999 12:16:00 PM
From: 4finger	Read Replies (1) \| Respond to of 8358

IMHO comparing rev to prior year is not relevant. The point that investors continue to miss with CS is that the company has completely transitioned their business from shared media hubs to switched products like the SSR product line. Prior to the transition shared media accounted for 75% of revenue. Today that number is around 5% and likely zero within a quarter or two. Per Dataquest et al layer 3 switch category will be a multibillion dollar market by 2001. Dell Oro etc has CS with top market share in the category at 28% ahead of CSCO, NT , LU. This currently accounts for 20% of CS Revenue line so yes 200% year over year growth in that area matters a whole bunch. RE R&D. CS has been crticized for their history of developing in house vs buying and achieving time to market advantage. Buying FlowPoint, Yago etc means you are going to see R&D number able to drop but shares outstanding go up. You can't have it both ways. Somehow the shit has to be bought and paid for. By the way what is a technician like you doing looking inside earnings. You are supposed to stick to squiggly lines aren't you:) cheers