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Strategies & Market Trends : Stock Watcher's Thread / Pix of the Week (POW) -- Ignore unavailable to you. Want to Upgrade?

To: Stock Watcher who wrote (28915)	3/8/2000 9:56:00 PM
From: hoffy	Read Replies (2) \| Respond to of 52051

CDO- Becoming an internet incubator. Chart looking great. Company has a venture capital group for starting-up new companies. Look for this to be spun off shortly. They are becoming an internet incubator like CMGI and SFE. Wall Street is just waking up to this stock and the chart is starting to show it. Could explode soon. Looks like a great long term hold. Wish I would have done that with SFE. I had that and sold way too early. I thought 50 to 100 was a good profit. Now it is 200.

To: Stock Watcher who wrote (28915)	3/9/2000 12:42:00 AM
From: jimbos	Read Replies (1) \| Respond to of 52051

****Everyone is cordially invited to witness the making of a short squeeze on INPH. Location- The Nasdaq Market, Time-930am Thursday, Bring your own popcorn.************ ********* Interphase Growing Net means growing market By Larry Kofsky, CBS MarketWatch Last Update: 11:55 AM ET Mar 8, 2000 Commentary NEW YORK (CBS.MW) -- If you can watch it, listen to it or buy it, you can probably also click on it. Growth of the Internet and e-commerce has created an expanding market for online data storage and retrieval. And Dallas-based Interphase Corporation (INPH: news, msgs) is in the thick of that market. Interphase designs and delivers high-performance connectivity adapters for computer and telecommunication networks. The company's clients include Hewlett-Packard (HWP: news, msgs), IBM (IBM: news, msgs), Lockheed Martin (LMT: news, msgs), Eastman Kodak (EK: news, msgs) and Intel (INTC: news, msgs). Revenue for 1999 was $73.5 million. Greg Kalush, president and CEO of Interphase talked recently about the company with CBS MarketWatch.com's Larry Kofsky. CBS.MW: How would you describe the Interphase business? Kalush: We do networking devices for local-area, storage-area and wide-area networks. And we're directing most of our attention right now to the storage-area network for the technology called "fiber channel." And that basically offers a substantially greater amount of bandwidth than old storage topologies used to offer. CBS.MW: What is fiber channel? Kalush: It's difficult to put in English. It's a relatively complex technology, but basically it is a storage-area network connectivity technology that allows for much faster transmission of data between storage devices and which allows multiple devices to be connected to one another. So there's not one single point of entry, and not one single point of failure in a network. It's now a much broader network that's much more robust. We're seeing very fast growth in the fiber channel area. Last year it grew over 200 percent, and we expect that growth to continue as we continue to penetrate that market. For the Fortune 1000, for example, they were running about 40 terabytes of storage back in 1998. By next year, they'll be running over 300 terabytes of data. And what we offer is the bandwidth pipes between the servers and the storage devices to make all that operate very fast, very effectively. CBS.MW: Is this private bandwidth, as opposed to the Internet? Kalush: It's also applied to the Internet. Much of the storage that's going on in the United States right now in terms of the explosive growth is going on because of the Internet and also because of e-commerce. For example, some of the Web sites have gone through as much as 42 terabytes of storage in just a matter of six months. The growth, I think, is generally being driven specifically on the Internet by multimedia. For example, a two-minute music video can take as much as 135 megabytes of storage. A ten-minute audio might be as much as four or five megabytes of storage. Text, for example, about 100 or 150 words of text might be a few kilobytes. So as you enter graphics and audio and video into the equation, the amount of storage just absolutely skyrockets. That's really what's driving it. As Internet sites are competing for click-throughs, the only way they're going to make that happen is having interesting content and that's streaming audio, streaming video, etc. CBS.MW: We're also see a move at the end-user level away from the dial-up connection to much faster connections. Does this also expand the need for bandwidth, as individual users get fatter pipes? Kalush: Absolutely. It starts with the end user. The end user's bandwidth grows, and the applications to drive streaming audio and streaming video and more exciting content to them will follow. CBS.MW: And how is this growth being reflected on your bottom line? Kalush: Last year we had record revenue, record profits and record cash on our balance sheet, so we're doing very nicely. CBS.MW: Is this the primary way that a company such as Interphase grows? Where do acquisitions fit into the picture? Kalush: We expect to see a lot of growth coming natively from not only the fiber channel segment of the market, but also from the telecommunications controller segment of the market. As you probably know, the cell phone usage and pager usage across the globe is just exploding. That requires a different type of telephony network, one that's based on equipment that's very much like computer equipment. And we're going after that market as well. It's a sizeable market, about the same size or larger than the fiber channel market, actually.