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

To: D.B. Cooper who wrote (4963)	11/15/2000 7:44:44 AM
From: DownSouth	Read Replies (1) \| Respond to of 10934

Thanks, DH. Dan is watching the ticker pretty close, isn't he? Top line is 109% yoy, 13% sequentially. He made it clear that 124% was not sustainable. Analysts had us at 102%. We thought it was strong, top line and bottom line. No real impact from Euro. 21% from Europe, stated in dollars. They actually grew 130% in Euros, vs 109% in dollars. F840 took us to 12TB, a new space for us. Fast start for product. Mix shifted to high end. On Caching, saw strong unit growth at low end with new "branch office edge product". Caching business strong. 8%, $20M. Sequential 100% growth. Some of the large deals from last quarter (Telmex) did close. Some did not. Rumors that EMC's new product coming tomorrow (today). Product is a result of CrosStor acquisition, which has never been a significant threat to NTAP. We are familiar with that technology. We don't think of NAS as a seperate segment. EMC continues to lead with Symmetrix, a direct attached product. Having a mid-range, different technology is not a threat. Win rate against EMC continues to go up. I think that this is a case of disruptive innovation (refered to Christensen). NAS re-architects and can move file system functions outboard, using network a higher degree of interconnectivity. SAN does not solve the UNIX vs Windows file incompatibility. Our direct approach does solve this problem. The NAS market is applicable to all external stg in both Windows and UNIX. In that market $15-$16B this year. There is an enormous opportunity for us to penetrate that market. Growth rate of NAS is function of how fast we can convert people to this new approach. It is very difficult to predict how fast people will change their views. Oil/gas were big wins this year. Won premier energy companies. ALso focused on financial services markets. Internet related business is still big business for us. We have a very broad base. We started in the software/semi design market. We are attacking verticles. Webmanage tech will provide end-to-end content distribution capability. Filers are in the center. Caching at the edges. Webmanage will get things from center to the edge. Content Director sets rules for synchronization, network balancing. How fast is overall market coming to grips with new storage paradigm? Warp speed. Growing so fast in terms of dollars and capacity. I think that most sophisticated customers are looking at storage as a seperate, strategic component of the IT infrastructure. Are you seeing cutbacks in storage? No. Very firm. Insatiable demand for storage solutions and online information in many forms. That component will continue to grow, even if IT budgets get cut. Guidance q over q 10-15% next few quarters, with seasonality. Full year of $1.1B. First half was $492M, so roughly $600M for second half. GREAT CONVERSATION!!!!