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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: The Ox who wrote (1620)	4/10/2005 12:17:28 PM
From: Rob Preuss	Read Replies (1) \| Respond to of 1762

Michael, Thanks for the weather report. :-) While your points are well-taken, I think I'm a little more optimistic than you. The broad plan has been to replace declining sales of low-margin legacy products with new higher-margin Eclipse products. Unfortunately, while sales growth for the new Eclipse products has remained on-track, sales of legacy products has declined more rapidly than expected. Consequently, STXN took action in Q3 FY05 to further reduce costs and the expense for such action should be complete in Q4 FY05. This means that the current quarter, Q1 FY06, will have lower break-even. Moreover, CAPEX spending is on the upswing globally (and the US dollar is weak) so we can expect Eclipse sales to grow slightly faster than earlier expectations. One thing I'm looking for is an expansion into new markets not traditionally served by STXN. I think this will include inceasing sales in North America. This expansion will be spearheaded by the new low-end Eclipse products that were just released and further fueled by more rapid product introductions (variants of the Eclipse line) than in the past. I guess we'll get a better read on things when the Q4 FY05 financial results are released. Rob