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Technology Stocks : Efficient Networks Inc - (Nasdaq- EFNT) -- Ignore unavailable to you. Want to Upgrade?

To: P314159d who wrote (493)	9/24/2000 12:36:45 PM
From: Perry P.	Read Replies (1) \| Respond to of 675

Ding, Ding, Ding......In this corner weighing in at 350 lbs........... The judges rule it was a draw! No punches now that the bell has rung. Perry P.

To: P314159d who wrote (493)	9/24/2000 4:52:10 PM
From: Mark[ox5]	Read Replies (1) \| Respond to of 675

S&M is only an issue to you EFNT is down due to SBC weakness and DSL overall install fears and "perception of commoditization". Good for Westell if it "dominates" a field where the product is going to sell for sub $100 in a year. Both vendors will have a large chunk of the ADSL pie, as will Alcatel (I dont understand why Cisco is even bothering with this business, but I'm not John Chambers) ADSL is going to be a high volume, low margin business and the market has punished BOTH of these stocks because of this PERCEPTION along with the faltering in install rates. The perception is not true yet, but it will be true soon. The mutiple expansion will NOT be going to the vendor who is relying on selling a lot of $99 modems in 12 months. The true winner will be who parlays CPE experience into VoDSL and VPN's etc over the next 6 months to 3-4 years which are very high margin products... (60%+ estimated) Selling to business is where it is at for high margin business, not residential. To do this you need money, you need R&D, you need sales force once the product is there... one of these 2 companies has a big cash hoard, the other is buying out other companies to get to their cash... EFNT is already in trials with 40 vendors on VoDSL, I have seen no announcement from Westell... maybe they are in 100 or 20 or 50.. who would know.. they don't communicate it very well if they are... but from all my reading I havent seen anything on VoDSL coming out of WSTL (yet). As for EFNT, for a company which has been able to go from $7M to $101M in 12 months, I think we can "allow" for significant expenditures to get there... if they were not growing at a decent rate I would agree with you as a 'concern', but they are not spending money left and right and not getting any "payback" from it. I find very few companies which have grown revenues 1000%+ in 1 year.