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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: blankmind who wrote (2910)	2/8/1998 1:33:00 PM
From: Greg Strzegowski	Read Replies (5) \| Respond to of 8358

Let's face it, CS has not kept up with the networking equipment customers need/want (and the direction the market is heading). In essence, they lost their way (a puppy that lost its mother) Now let's look at some facts and what they are currently doing (i.e., Action Steps): FACT: Bay Networks stated in its most recent quarter that 59% of sales were from products they did not sell 12 months ago (This fact leaves promise for CS if they get the set of products that their customers want) (Very important if you beleive CS can trunaround the ops with new products) Many IT folks need products that work. They are company agnostic. Action Steps of CS: - New President Don Reed (Most in the investment community think Don is inept. What's positive about that is that Don knows that is what the investment community thinks of him. He will not stand for it). And Don has 600,000 shares of restricted stock with a basis of $34.00/share. - Reorg. 600 employees whacked. Future strategic plans to be announced in the latter half of march/early April. - Purchase DEC. Broad customer base. (Now opportunity with CPQ). However, the other day I was speaking with CS and asked of their plans for a VPN device. CS indicated DEC already has a product (Do not underestimate the technology that resides at DEc in the networking division). People at DEC are talking about Terabit (not Gigabit technology). Check out the benefits that QNTM had with the purchase of DEC's DLT business. Give CS a chance to review the entire product line of DEC and let CS make these products better known. - Purchase of YAGO. The 8000 has the best price/performance of any switch in the market place today and within the next year (easy). Ready to be installed in your enterprise's backbone (and shrtly your ISP/Carrier) at a blistering 15 mpps. Bay's product only 4-5 mpps. 3Com's product only 4-5mpps and the Corebuilder 9000 9 mpps. CISCO's newly introduced insert card for the 5000 series routers only 2-3 million pps. Oh Yeah the 16000 swithces at 30 million packets per second. And the YAGO products will have OC-48 WAN interfaces (This is the year of OC-48) - New WAN connectivity interfaces for the Smart Switch 6000 announced at ComNet. - Oh Yeah and the folks at CISCO stated in their quarterly conference call that certain competitors have very attractive switching price points. (Switch market is forcasted to be 2.2 billion by 2000, however, the total router market is 9.0 billion today. If CISCO moves to switching faster than the routing market (for upgrades) starts to open up. Christmas can't come soon enough. Look for quarter/quarter improvment in: - Products/Cost Reduction/Strategic moves. Comments/Regards