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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: mariner who wrote (1634)	11/17/1999 12:07:00 AM
From: H.A.M.	Read Replies (2) \| Respond to of 10934

Network Appliance: 2Q Rev Rose 92% But 3Q May Be Slower Dow Jones Newswires November 16, 1999 PALO ALTO, Calif. -- Network Appliance Corp. (NTAP) posted 92% year-over-year revenue growth in its second fiscal quarter, but warned that the growth rate may slow a little in its third quarter, which straddles the start of the Year 2000. "We're approaching this quarter with a degree of cautious optimism," said Daniel Warmenhoven, chief executive at the Sunnyvale, Calif., maker of storage equipment for data networks. During its second quarter, which ended Oct. 29, the company posted net income of $16.0 million, or 19 cents a share, up from $8.2 million, or 11 cents a share, a year ago. That bested the consensus estimate of 17 cents a share from 12 analysts surveyed by First Call Corp. Revenue was $124.7 million, up from $65.6 million. Sales to Internet and electronic commerce companies accounted for 30% of total revenue, up from 15% year ago. Prior to Tuesday's earnings announcement and conference call, the analysts' consensus for third quarter net income was 19 cents a share. Warmenhoven said he guessed that the consensus might move up a couple pennies, but warned that there is more uncertainty associated with that figure than there would be in a normal quarter because of the unique and as-yet-unknown impact of Y2K. Warmenhoven noted that sequential revenue growth in the second quarter was about 20%, and said that the third-quarter figure was more likely to be in the neighborhood of 10%. During the second quarter, Network Appliance's bottom line benefited from a change in its product mix, according to Warmenhoven. Although the company's disk drive business, which accounts for about 40% of total sales, continues to feel downward pressures on prices, the companywide gross margin slipped only to 58.7%, from 58.8% in the first quarter, he said. That was because of an offsetting boost from Network Appliance's software sales, which generate a high margin and grew to 14% of revenue, up from 10% in the first quarter. Tom Mancino, an analyst at Pacific Growth Equities Inc., said that he views Network Appliance as "a software story." The programming it can provide makes Network Appliance's storage systems easier to implement and "gives the company a staying power and calling card with certain customers (which) adds to and accelerates its market power," he said. Although Network Appliance closed Monday trading at about 95 times its expected fiscal 2000 earnings, Warmenhoven said he still saw "potential for significant multiple expansion." That's because the company's price-to-earnings ratio is approximately equal to its annual growth rate while some other companies - such as Sun Microsystems Inc. (SUNW) - have P-E's that are triple their growth rates, he said. On Tuesday Network Appliance's stock price rose with other companies in the network storage appliance sector to close at 103 7/16, up 13 9/16 or 15.1%, in Nasdaq composite volume of 2.6 million shares. Average daily volume is 797,000 shares. With the stock price in triple digits, Network Appliance announced a two-for-one stock split. -By Rick Jurgens; Dow Jones Newswires; 650-496-1367; richard.jurgens@dowjones.com

To: mariner who wrote (1634)	11/17/1999 8:00:00 AM
From: DownSouth	Read Replies (2) \| Respond to of 10934

Hey, its not like this thread is difficult to keep up with! Cheerleading is permitted. We have not had any flames here, but perhaps its time we discussed some thread etiquette, before it becomes an issue. I suggest we enforce the following guidelines: 1. No flames. 2. No spam. 3. Restrict in depth discussion to a) NAS; b) SAN; c) web caching products and markets. 4. Courtesy to others will be encouraged. These are just suggestions, but I would like for us to come to some sort of consensus on thread guidelines. Then the regulars can work to enforce those guidelines together. That way one of us doesn't have to be the bad guy all the time. More importantly, it means we can work together more effectively to monitor this Tornado, cause its gonna get exciting! What do y'all think?