To: Jenna who wrote (72232 ) 11/18/1999 12:24:00 PM From: kendall harmon Respond to of 120523
APEX--Cowen's target is 40 or more, here are today's comments <<SG Cowen Securities Inc. APEX STONE, ROB APEX/Q4 ON TRACK; NEW PRODUCTS HIGH-END SOLUTIONS/BUY Key Points: 1. New Products Shipping Despite Lingering Transition Issues; Q4 Shaping Up Well 2. New Products Support Large-Scale Server Deployments And Expand Administration Capabilities Buy: Some Challenges For Q4; Long-Term Outlook Remains Positive -- APEX is the market and technology leader in console switching products for client/server networks, which allow multiple servers to be controlled from a single console (keyboard, monitor and mouse). It also provides custom cabinet systems to house servers and switches. It improves the total cost of network ownership through: reduced hardware and space requirements, lower utility costs, more efficient use of personnel, and shorter downtime when problems occur. It is the sole source for Compaq, Dell, and IBM, and its broad base of eight OEMs covers over 55% of the server market. Penetration of switches into installed networks is probably about 25%. Strong branded, distribution, and European sales combined with new product developments and emerging Internet and e-commerce trends represent long-term revenue opportunities. Our outlook for Q4 remains positive as management reports an interim solution has been found to remedy product transition problems encountered in Q3. Uncertainty may still hamper the stock performance through the next earnings release, or until investors can be convinced that all is well with the base business. Our price target is $40-$43 based on a 26-28X P/E on 2001 EPS of $1.55.>>