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Technology Stocks : Netro Corp - (NTRO) -- Ignore unavailable to you. Want to Upgrade?


To: Douglas Craig who wrote (708)6/20/2000 9:52:00 PM
From: Rob Preuss  Read Replies (2) | Respond to of 792
 
Doug,

Thanks for your comments. I would not be surprised to
see NTRO achieve 50% sequential growth in revenue for
a few quarters (which would translate into an annual
growth rate of more than 200%) but I would be surprised
to see them keep up this growth rate for an extended
period of time. Traditionally, fundamental analysis
(for the purpose of securities valuation) does not
look at the growth rate for just a few quarters but,
instead, it looks at the sustainable growth rate
over an extended period of time... typically, 5 years.
Moreover, that 'long term' sustainable growth rate
is traditionally more highly valued if it is highly
predictable so that it doesn't come with a lot of
fluctuations along the way.

The telecom equipment market overall is predicted to
grow at an annual rate of just 32% for the next five
years; wireless will probably grow faster than that...
I'd venture maybe as much as 45%. Now NTRO is small,
so it may grow faster than its sector... so I may
generously/optimistically assume that NTRO will achieve
a 60% annual growth rate over the next 5 years... but I
simply can't see it growing at a 200% rate for very long.

I took the 30% annual growth rate assumption from this link:
biz.yahoo.com
Presumably, this represents the considered opinion
of a bunch of well-informed analysts who follow NTRO.
If we took this (highly optimistic) 60% growth rate
for our calculations we'd find the P/E/G is "only" 3.2
[I recently read at The Motley Fool that a stock with a
P/E/G of 2.25 or more should be considered overvalued]
but the P/E would remain at an astronomical 189.

Still, you could be right.. it could be that the market
is valuing NTRO based on an assumed 200% annual growth
rate. Moreover, the market could be ignoring analyst
predictions that NTRO will lose $0.25/sh this year (Dec'00)
and earn $0.24/sh next year (Dec'01)... instead the
market could be substituting more bullish EPS estimates.
If so, is the market right? (Yeah, yeah, I know... its
right by definition - in some sense.) What is it that
the market is seeing that the analysts aren't seeing?

Again, thanks for your comments.

Rob



To: Douglas Craig who wrote (708)6/29/2000 9:49:00 AM
From: Mark Oliver  Read Replies (1) | Respond to of 792
 
Netro Corporation Implements Datasweep's Breakthrough Web-Based Supply Chain Solution for Cross-Enterprise Manufacturing

BusinessWire, Tuesday, June 27, 2000 at 08:01

SAN JOSE, Calif.--(BUSINESS WIRE)--June 27, 2000--

Leading Provider of Wireless Access and Networking Solutions

Implements Datasweep Advantage for Product Quality, Traceability and

Cycle Time Reduction

Datasweep, Inc., the leading provider of Web-centric supply chain manufacturing solutions, today announced that Netro Corporation (NASDAQ:NTRO), a leader in broadband wireless solutions, has implemented Datasweep Advantage(TM) to leverage the Web for real-time tracking of custom configured products. Netro selected Datasweep for its ability to deliver real-time visibility and access to unit-level product order status against customer orders. Using Datasweep Advantage, Netro gains real-time visibility across the extended supply chain to boost production cycle time and maintain quality and control over its outsourced manufacturing production.

"For our customers in the booming networking and wireless market," said Dr. Mannon Wong, vice president of operations for Netro Corporation, "quality, speedy delivery, and a flexible product configuration mix are high on the priority list of customer expectations. Datasweep enables us to meet our quality goals and facilitates a faster ramp up to full production for a varied mix of product configurations with our outsourced manufacturing partners. In our business, it is absolutely vital that the quality of these high performance products is maintained and the products are expediently configured to the correct bills of materials exactly as specified by the customer -- all of which Datasweep tracks."

Netro is utilizing Advantage's datamart functionality to capture critical production information for real-time analysis and collaborative manufacturing to improve communication with contract manufacturers. Datasweep's automatic capture of detailed "as-built" and "as-maintained" configuration data, including serial number tracking, along with test data and quality data from their multiple outsourcers allows for individual product traceability and genealogy - especially critical for telecommunications manufacturers.

Netro Corporation markets one of the first commercially available point-to-multipoint broadband wireless systems carrying IP and voice traffic called AirStar(TM). The AirStar(TM) family of products bridges the gap between high-speed metropolitan backbones and corporate networks. Netro's key customers and resellers include powerhouse companies such as Lucent Technologies, Motorola, and Siemens/Italtel.

"Unlike existing Supply Chain Planning solutions, Datasweep taps the real-time power of the Web for manufacturers to collaborate on what is happening on the shop-floor at any given moment," said Vladimir Preysman, president and CEO of Datasweep. "Also, Datasweep's data capture functionality is particularly essential for a company like Netro that has to meet quality standards such as ISO9000 and telecommunications standard TL9000."

By using Datasweep's supply chain solution Netro will reduce cycle time and improve product quality, traceability and supply chain visibility to their contract manufacturers. Datasweep's advanced Web-based architecture and capability for up-to-the-minute unit level production status provides Netro with the infrastructure to meet its goal for faster product rollouts at higher volumes, while maintaining peak standards of quality for a very demanding customer base. Netro will use Datasweep to help address three factors critical to successful manufacturing: first-time right products, detailed product history records, and shorter production ramp-up schedules. With Datasweep Advantage's real-time visibility into outsourced plant operations, Netro will be able to build according to the original bill of material, and maintain important "as-built" unit-level detail for a product's lifetime.

About Netro Corporation

Netro Corporation (NASDAQ:NTRO) is a leading provider of intelligent broadband wireless access solutions for Internet and telecom service providers worldwide. Netro's broadband wireless access system, AirStar(TM), derives its price performance benefit from its proprietary packet-based technology that maximizes spectrum usage through dynamic bandwidth allocation. AirStar(TM) is one of the first commercially available broadband wireless access systems, carrying IP and voice traffic using a point-to-multipoint architecture. For more information, contact Netro Corporation, 3860 North First Street, San Jose, CA 95134-1702 USA (408) 216-1500, netro-corp.com

About Datasweep

Datasweep develops and markets Web-centric supply chain manufacturing solutions that help high technology manufacturing companies build customized products correctly and track production information throughout the extended manufacturing enterprise. Customers include Flextronics International, Ltd. (FLEX), KLA-Tencor Corporation (KLAC), Netro Corporation (NTRO), Harmonic, Inc. (HLIT), and Intuitive Surgical, Inc (ISRG). Datasweep was named as one of the "Hot 100" Private Companies for 2000 in the business-to-business category by Upside Magazine (www.upside.com). Additional information can be found on the Internet at www.datasweep.com.

Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995.

Except for the historical information contained herein, the matters discussed in this news release are forward-looking statements involving risks and uncertainties that could cause actual results to differ materially from those in such forward-looking statements. Potential risks and uncertainties include, but are not limited to, Netro's historical and future losses, limited operating history, dependence on a single product, fluctuations in quarterly operating results and limited manufacturing experience. Further information regarding these and other risks is included in Netro's prospectus dated August 18, 1999 and in its other filings with the Securities and Exchange Commission.

CONTACT: Datasweep, Inc.

Ann Latham, 408/350-7346

ann@datasweep.com

or

The Horn Group

Phoebe Berline, 415/905-4038

pberline@horngorup.com