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To: van wang who wrote (696)	12/4/1997 10:30:00 PM
From: van wang	Respond to of 1229

can this be good for us? Headline: FOCUS-Sun Micro (NASDAQ:SUNW) Q2 outlook cheers analysts ====================================================================== PALO ALTO, Calif., Dec 4 (Reuters) - Sun Microsystems Inc's statement that its second quarter business was progressing well boosted optimism the company will meet or exceed Wall Street estimates, financial analysts said. Shares of Sun, a maker of workstations for engineers which is expanding into a broader computer systems company, rose as high as 41-11/16, up two, before shedding some gains to close at 40-9/16 on Nasdaq volume of more than 10.5 million. "The Sun meeting was very upbeat. They've done more than 50 percent of their expected revenues for the first two months of the quarter," said Salomon Smith Barney analyst John Jones. "If anything, (analysts' estimate) numbers may be inching upward," said Jones, adding he expected their could be a "modest upside" to his current earnings estimate of 54 cents a share for the second fiscal quarter, which ends December 31. According to a survey of analysts by First Call conducted ahead of Wednesday afternoon's analysts conference, which was closed to media, the consensus analyst estimate is also 54 cents a share for the period, up from 46 cents a year ago. David Wu, analyst at ABN-AMRO Chicago Corp, said Sun might normally book one third to 40 percent of its revenues in the first two months of a quarter, so the 50 percent figure was "a little bit better than average but not a great." A Sun Microsystems spokeswoman said around two dozen Wall Street equity research analysts had met the company's chief financial officer, Michael Lehman on Wednesday afternoon, but had no immediate comment on details of the meeting. Lehman has begun holding quarterly closed-door briefings for selected "sell-side" analysts who work for stock brokers and investment banks, the company said. Analysts said the CFO told the gathering that the company's high-end Starfire computers were doing very well and its Enterprise 3000 and 6000 systems were also strong. Jones noted Sun was increasing production capacity on its Starfire models up to 150 systems a quarter, which it will achieve "within a few months," and said "there's no want for demand," with some customers ordering 10 systems at a time. "The low-end workstations is the soft spot and we're expecting a whole rollout of a new family of products, top to bottom, on January 13," said Jones. Lehman Brothers analyst George Elling said Sun's systems business was on or above expectations, with its new 450 product meeting plan and the storage business performing strongly. Elling projected year-over-year growth in Sun's Unix server business at over 25 percent, with stable pricing trends. Sun Micro, based in Palo Alto, California, is doing very well in the United States, with operations in Britain, France and Germany doing better than they had been in recent quarters. Japan was showing modest local currency gains, though down in dollar terms. But Elling also said he expects a large one-time write off in the second quarter, which he predicts will exceed $100 million, related to Sun Microsystem's recent acquisitions. Elling said he was retaining his buy rating and a target price of $55 for the stock, with a projection the company will hit $9.99 billion in revenues, a 16 percent year-over-year increase, in its fiscal year ending June 30, 1998. (sam.perry@reuters.com, in Palo Alto +1 650 846 5400) Copyright 1997, Reuters News Service

To: van wang who wrote (696)	12/4/1997 11:58:00 PM
From: Brad Zelnick	Read Replies (1) \| Respond to of 1229

I hear you. My understanding from Comdex is that HP has announced an 8-cpu server, but it is not their product. They just slap the HP name plate on it. My remembrance is that it is the DGN box, with Axil technology. This could be a standalone deal, or could represent more. Note that NCR is using Solaris. Note that DGN is pushing their high-end NT boxes. Note that NCR is the major server supplier to M$FT for NT development. Note that SQNT is selling WorldMarks. Lots of interesting alliances in this area.