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Technology Stocks : 3Com Corporation (COMS) -- Ignore unavailable to you. Want to Upgrade?

To: Elmer who wrote (13818)	2/8/1998 4:09:00 AM
From: Mang Cheng	Read Replies (1) \| Respond to of 45548

"Random Access" February 4, 1998 8:37 AM PST Inter@ctive Week Just because the International Telecommunications Union is close to adopting a standard for 56-kilobit-per-second modems, don't assume that compatibility problems will instantly disappear. In fact, sources at Rockwell Semiconductor Systems (www.nb.rockwell.com), which helped develop the K56flex flavor of the fast analog modems, say that 3Com Corp. (www.3com.com), which is behind the x2 technology, will introduce new incompatibilities by rushing an upgrade to consumers and Internet service providers. "If 3Com says they can get the upgrade software tested and coded in 10 days, it won't talk to anything else [but modems based on 3Com's version of the standard]," said one source. 3Com officials, however, claim that the company is conducting extensive compatibility tests. Which Gigabit Ethernet start-up will be the most likely to follow Prominet Corp., Rapid City Communications Inc. and Yago Systems Inc. into the arms of a well-heeled internetworking company? Don't bet on Foundry Systems Inc. (www.foundry.com). Unlike the aforementioned trio, Foundry is dedicating serious resources to building a distribution channel, a signal that the company is prepared to go it alone instead of counting on an established suitor with a hole in its high-end switching strategy. In addition, Foundry is on target to go public "in about a year," according to Drusie Demopoulos, Foundry's vice president of marketing. While the ability to bring to market Gigabit Ethernet hardware, Layer 3 switches and other state-of-the-art technology will play a huge factor in determining the players at the top of the networking heap in the next century, it could be strategic folly to overlook the market for more pedestrian networking gear. According to a recent report from Infonetics Research Inc., medium-sized companies -- defined by Infonetics as having between 501 and 1,000 employees -- will spend about $25 billion on networking gear by the year 2000. And, unlike the Fortune 500 crowd, medium-sized businesses will be buying up traditional hubs and plain old Layer 2 switches. Which network equipment provider is likely to follow the lead of Bay Networks Inc. (www.baynetworks.com), Cabletron Systems Inc. (www.cabletron.com) and Lucent Technologies Inc. (www.lucent.com) by purchasing a Gigabit start-up? In this case, the player-not-to-be-named-later is 3Com Corp. (www.3com.com). In fact, 3Com is already parading out some of its high-end and homegrown Gigabit Ethernet switches, which it began developing about two years ago, according to Edgar Masri, vice president and general manager of 3Com's premises distribution division. Grabbing some marketing mileage over the fact that 3Com recognized the eventual value of developing Gigabit Ethernet gear before its rivals,Masri says that acquiring technology through acquisition is a sign of poor planning. zdnet.com Mang

To: Elmer who wrote (13818)	2/15/1998 10:01:00 AM
From: Glenn D. Rudolph	Respond to of 45548

Thanks very much for the summary. However, I think I ask the wrong question. I should have ask if the sentiment on the street is as negative on COMS as it was on ASND at the end of December. David, It is difficult to measure sentiment but the sentiment on COMS is definitely negative. I do not believe it is as negative as it was on ASND at the end of December. Also, in your opinion which houses are important in forming the Street's consensus on COMS. Thanks again. I have to wing this a bit because the subscription site I use for this is not responding this AM. Merril Montgomery Securities Solomen Brothers I will post the latest Merril report if I get time later today. Glenn