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

To: Rob Preuss who wrote (1621)	4/10/2005 9:06:27 PM
From: Czechsinthemail	Read Replies (1) \| Respond to of 1762

Hi Rob, I think your analysis of STXN's situation is basically correct. However, I think an important component in the decline of legacy sales has been cannibalization from the new Eclipse products. Whether in the form of buying Eclipse and not buying older products or simply holding off on buying legacy items while waiting on Eclipse, I think management and many shareholders underestimated how dramatic this effect would be. Besides the lowered cost structure, I think the positive driver for STXN is that Eclipse sales will continue to grow -- with significantly higher margins -- and the drop off in legacy sales will have less overall impact. Eventually, there will be a shift in perception based on STXN seen in terms of its Eclipse product line and less in terms of its older product line. At the point people begin to focus on STXN more in terms of its promising future and less in terms of its disappointing history, I think the stock will see a dramatic rally. The upcoming earnings announcement may provide the catalyst. The trigger may come not necessarily in terms of the Mar Q results, but perhaps in the guidance and a sufficiently persuasive collection of dots for people to connect. Best of luck to you and everyone else who has waited -- patiently or not -- for STXN to come to life.