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

To: Cruiser who wrote (3594)	1/20/1998 11:27:00 PM
From: Paul Fine	Read Replies (1) \| Respond to of 6980

I also listened to the Conf. Call(it is 1 1/4 hours long, if anyone else is intending to listen). I heard them say that the 5MM new shares/qtr will probably only continue for another two qtrs. It reflects the change to two major distributions this year, but will possibly cut back to one a year, depending on the competitive compensation issue. The red flag has been raised. Anyway, I just finished listening to the conf. call. Overall, I think it was delivered and received in a positive light. If anyone was looking to report this conf. call in a "glass half empty" vs. "glass half full" manner, I heard a few areas that could be of concern: 1. The difference in this current qtr. being "good" vs. "great" will be dependent upon Mfg. being able to ramp up sufficiently to meet anticipated demand for Accelar products(esp. 1000 line). 2. In the qtr. just finished, the North American mkt was softer in growth sequentially than in the recent past. Asia met revised expectations and Europe was strong. They expect NA market to begin growing again, but macro issues(technology transitions, etc) make the timing uncertain. Maybe this quarter, but more confidence in it happening June qtr. Other than that, I heard positives on competitive position, new product cycles(look for PR release tomorrow on updating the BayStack line in Feb, putting Bay a generation ahead of Cisco products announced to ship in March) and sequential qtr growth of current levels at least thru the next two qtrs. The past 3 years, Bay's March qtr has suffered seasonal, sequential declines; they are anticipating breaking that trend this year. I would expect much of the same upbeat stuff tomorrow by Mr. House on CNBC SquawkBox in the morning. Paul