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

To: Eric L who wrote (2198)	1/27/2000 8:35:00 PM
From: Gregory Rasp	Respond to of 10934

Network Appliance: An Inexpensive Play on Network Storage By Alexander Muylle Technology Fund Manager Delta Beursvennootschap, Belgium Send to a friend. NETWORK APPLIANCE (NTAP), which designs and markets data storage devices for networks, derives 90% of its revenue from the network-attached storage market. This differentiates it from its main competitors EMC (EMC) and SUN MICROSYSTEMS (SUNW), which support different architectures, such as storage-area networks and server-attached storage. The demand for NETWORK APPLIANCE's products, called filers, is accelerating owing to the explosive growth of data, the increase in Internet usage, and the constant demand for higher bandwidth. Its network-attached storage approach reduces the cost and complexity of managing mission-critical data. The company's filers are specialized disk arrays that connect directly to a local area network Vital Statistics Network Appliance (NTAP) -------------------------------------------------------------------------------- Recent Stock Price: $114.87 (1/21/00) Market Cap: $17.15B Shares Outstanding:149.3M 52-week High: $120.00 52-week Low: $19.06 Projected 5-year EPS Growth: 60% EPS: 2000E: $0.39 2001E: $0.56 Revenue: 2000E: $530M 2001E: $900M Software, which accounts for 14% of the company's revenue, is at the heart of NETWORK APPLIANCE's products. This growing revenue from software helped to offset the decline in disk drive prices during the latest quarter, keeping the company's gross margin flat at 58.7%. With its 46% market share in the network-attached storage area ? twice that of its nearest competitor ? and a clear product lead over the competition, NETWORK APPLIANCE is forecast to enjoy 60% annual growth during the next few years. Revenue growth has accelerated in the recent quarter to 90% year-over-year. Bearing in mind the execution risks typical for a fast-growing company, NETWORK APPLIANCE represents an interesting investment opportunity in the booming data storage market, along with EMC, SUN MICROSYSTEMS and VERITAS SOFTWARE (VRTS). CLICK HERE for our complete Global Internet Industry Index.