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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: lazarre who wrote (958)	6/20/2000 7:16:00 PM
From: Rob Preuss	Respond to of 1762

Some numbers... I was doodling with some numbers to compare NTRO with DMIC and here's what I got... NTRO DMIC EPS -0.25 +0.52 (Present FY - ending Dec'00 and Mar'01, respectively) EPS +0.24 +0.74 ( Next FY - ending Dec'01 and Mar'02, respectively) Growth 30.0% 27.5% (Over next five years, vs 32% for Telecom. Equip.) Price $54.0 $39.4 (Closing prices on 6/20/00) P/E 225 53 (Closing Prices on 6/20/00 vs Next FY EPS) P/E/G 7.50 1.94 (P/E vs expected growth over next five years) Source: biz.yahoo.com biz.yahoo.com In addition, DMIC has no long term debt. I'm not sure what kind of debt NTRO has at the moment but I feel fairly sure that it must be a lot higher. It sure is hard to understand why NTRO is trading at these high prices. All I can say is: hype & hope.

To: lazarre who wrote (958)	6/20/2000 8:20:00 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

I just watched Kissner's 15 minute interview on ON24. He didn't say anything that I didn't already know, but perhaps its still worthwhile to mention some of the points he made: o DMIC is in the Broadband Fixed Wireless Access market. o DMIC is currently the market share leader in this market. o This is currently a $1B market and, while some service providers are predicting 100% to 120% annual growth in this market, DMIC is (characteristically) being more conservative in their projections. DMIC expects this to be a $4B to $8B market within 5 years. o DMIC is seeing new orders come in at a "stunning" rate. They've had over $100M in new orders in each of the last 2 quarters. o DMIC has the most spectrum efficient products available on the market today. Their Altium radios offer 155 Mbps capacity in only a 28 MHz wide section of the spectrum. No competitor offers this much capacity in less than a 56 MHz wide section of the spectrum. Since service providers paid good money for these spectrum licenses, it would be foolish for them to buy other products that use this spectrum inefficiently. o DMIC is not really a "microwave" company any more. First, from a technical perspective, their equipment operates at "millimeter wave" frequencies now... these frequencies are higher than "microwave" frequencies. More importantly, DMIC is becoming more of a "solutions provider" whereas, in the past, they've been just a "box builder". Today, they offer the broadest range of Broadband Fixed Wireless equipment in the industry; moreover, an increasing portion of their revenue is coming from network management and other services. o DMIC is currently the Gorilla in this market and it will be hard for any newcomer to unseat them. The high barriers to entry in this market include: the difficulty of closing the communications link at long distances, the difficulty of achieving high capacity in a narrow portion of the spectrum, and the difficulty of manufacturing these products in high volume. DMIC has already overcome these difficulties. Operationally, DMIC continues to focus on cost efficiency. They recognize that they are in a highly competitive market and cost efficiency is necessary so that they can profitably offer competitively priced equipment and services. Rob