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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?

To: DownSouth who wrote (4959)	11/14/2000 6:45:52 PM
From: Stefano	Respond to of 10934

DS, I think the seemingly emotional sell off after hours might have been a response to the lack of another split. The annual pattern of announcing a split with this earnings report has been broken. Of course a split is of no real value, but tends to be viewed positively by investors....(maybe more so by less experienced, impatient investors with a shorter time horizon). Stefano

To: DownSouth who wrote (4959)	11/14/2000 6:54:30 PM
From: pirate_200	Read Replies (1) \| Respond to of 10934

Downsouth, great notes, thanks! My comments: COMPETITION: they said EMC has been "shadow boxing" with their pending NAS offering for over a year. I think Tom Mendoza said that EMC might announce the product tomorrow and said "Let's get it on!" Basically, I think they said the same thing everyone has said here: EMC's Celerra/Symmetrix doesn't compete well with NTAP, how will this new lower-end (for EMC) product compete? EMC has a problem: do they lead with Symmetrix, server attached? Celerra-NAS? Chameliion-lower-end-NAS? Their product set seems confused. It'll be interesting to see how they position all this. NTAP also said that Crosstor has been sold by Auspex and MTI and NTAP has had no issues throttling them, so what changes here now that EMC has bought them and slaps an "EMC" label on the box? MARGINS: they keep saying they expect margins to get hurt, it's been a few years that they have been saying this. Sounds like the thing that hurts margins is larger configurations with more disk drives that are lower in margin BUT on those type of configurations they sell more software which basically negates or mitigates the margin issue. Even the COO? said that he has consistently been wrong about margin pressure. Nice problem to have, I guess. REVENUE: like margins, it seems like over the last two years they have been saying revenue growth will eventually track market growth - NAS market projected at 70% - but they continue to roll far above it. Is the market research continually wrong or is NTAP picking up most of the growth? Somewhere in-between? MY QUESTION: I'm still curious about new product introductions and their affect on revenues, but no one asked that question. I've got to believe that it affects the sales cycle because the sales person has to deal with the old high-end system being the new mid-range and a new high-end. It must take a quarter to get this straightened out? Hell, 10-15% guidance for quarter-to-quarter sequential growth and a fiscal year target of $1.1B revenue floats my boat!

To: DownSouth who wrote (4959)	11/14/2000 10:34:53 PM
From: Kayaker	Read Replies (1) \| Respond to of 10934

Network Appliance also beat analysts' expectations for the fiscal 2001 second quarter. The Sunnyvale, Calif.-based company reported pro forma net income of $36.6 million, or 10 cents a share, compared with pro forma net income of $16.1 million, or 5 cents a share, for the same period a year ago. Revenue increased to $260.8 million from $124.7 million a year ago. Wall Street predicted that the maker of computer data storage equipment would post earnings of 9 cents a share, the consensus estimate of 21 analysts surveyed by First Call/Thomson Financial. In after-hours trading, however, Network Appliance fell $9.25, or about 10 percent, to $87 on a volume of 755,500 shares. During the day, the company's shares rose $11.75, or nearly 14 percent, to $96.25. "We were expecting a little more from the top line," said Bill Lewis, an analyst at Chase Hambrecht & Quist. "People are concerned that the party might be over." In the past 52 weeks, Network Appliance shares have traded as high as $152.75 and as low as $18.31. yahoo.cnet.com Shoot ye not the messenger.

To: DownSouth who wrote (4959)	11/14/2000 11:32:24 PM
From: Joe Hoek	Respond to of 10934

The cc is almost over. I have not been able to take notes, Well DownSouth if that was written with not taking notes, then you must write a novel when you do take them. Thanks. As always, this thread is level headed, informative and not full of BS posts of hype or doom and gloom.

To: DownSouth who wrote (4959)	11/15/2000 2:53:34 AM
From: Puna	Read Replies (1) \| Respond to of 10934

I missed the CC but your review was probably better DS-! I concur with all the comments on it in subsequent posts. If Naz & DJIA Futures are even half as high as the were when I took a peak at 2am Eastern, we may have a little rally in store for today. DJIA Futures(CBOT-Eurex)Dec 2000 +177.00 11/15 2:00 Nasdaq 100 (globex) Dec 2000 +240.50 11/15 2:05 (World Markets up big as well) Maybe that will be enough to change the minds of those that sold NTAP down to 89 in extended hours. Puna