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To: Jacob Snyder who wrote (8951)	8/14/2001 10:00:36 PM
From: Jacob Snyder	Read Replies (2) \| Respond to of 10934

my comments on CC: I was very favorably impressed by the gross margin of 56%, which is flat with last quarter, and only a small decrease from their LT historical 59%. This contrasts sharply with the EMC GM numbers, which fell from 55% (previous quarter) to 47% (just reported quarter). Both EMC and NTAP are showing a willingness to cut prices in order to get sales, but this seems to be hurting EMC more. In addition, NTAP said that costs should be about the same next quarter, and sales should be flat or slightly up, so margins shouldn't worsen next quarter. They clearly understand that their previous customer base (heavy on dotbombs) is unreliable, and they are trying hard to get a customer base that looks more like EMC's. I don't think the CC should be a reason for the stock to sell off; if it does, I'd consider that a buying opportunity. This CC reinforces my belief that business conditions won't get drastically worse, going forward. It makes me marginally more willing to buy bigger increments of LEAPs when the stock is in the 10-13 area, and hold back less for the 5-10 area, as I think it is less likely I get those prices.