Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Doug who wrote (3191)	12/16/1997 10:31:00 AM
From: WBendus	Read Replies (2) \| Respond to of 6980

I've got a copy of the DLJ Analyst report that was released at 9:18 AM on Wed. Dec. 10. Steven Koffler stated: "We found Bay Network's management to be positive overall in our meeting with them on Monday, but two issues did come out that cause us to be cautious about the medium term outlook. The company faces significant product transition situations in both the router and hub business from its continued roll-out of switching products. Specifically we were disapointed to learn that the company's product strategy for 100 megabit 'HUBS' so far has not provided incremental growth in the hub business in the December quarter. Aslo, the company until recently has characterized the router market as a growth market, but now is characterizing it as flat or low growth in calender 1999....." Routers and hubs are being canabalized by the Accelar GE layer 3 swithces. This is positive in my view because it shows that GE is coming on very strong and that companies are willing to shell out the extra bucks to buy the best technology. What would concern me, would be if the margins are actually better on routers. I do not know that to be the case and I would actually tend to think the opposite to be true, that GE, where there is less competition at the moment, would have higher margins. In the analyst report, the company also expressed some slight concern about the March quarter. They felt that it might be the case that corporate budgets may not yet be in place by that time and may delay some purchases of networking products. Wayde.