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

To: P314159d who wrote (533)	10/14/2000 4:31:24 AM
From: Elroy	Read Replies (2) \| Respond to of 675

But anyone think they can exceed .05? It all depends on gross margins, baby. Network equipment companies with > $50 million per Q in sales should generate gross margins 40%+ AT LEAST. EFNT, as we all know, is supposed to show about $125 million this Q. If EFNT can get their margins up to an industry standard level they will have NO problem showing mega EPS over this quarter and the upcoming ones. If the margins for EFNT sit in the sub-30% range, some other company (the chip maker?? the contract assembler?? who??) is grabbing all the profits that should belong to EFNT. Explosive revenue growth with crap gross margins is crap. Elroy