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Technology Stocks : YURI ( YURI SYSTEM ) -- Ignore unavailable to you. Want to Upgrade?

To: SteveG who wrote (779)	3/10/1998 12:21:00 PM
From: The Phoenix	Read Replies (1) \| Respond to of 1181

Steve, FORE's competitive product - Cadia - has been delayed until 99 with a redployment of the engineering team (see Gary, it's NOT that easy to get carrier class quality). FORE is a pathetic example. Other vendors such as NT, 3Com, CSCO, MOT, even ASND...all have been delivering carrier class products far longer than YURI. I should also point out that YURI products are not NEB's compliant. This will have an effect on thier penetration into the RBOC's where NEB's is required for CO real estate. I'll also point out that FORE has never built a carrier class product so it comes as no surprise that they're struggling. I'd like to point out one other fact regarding a comment (or quote perhaps) made by Miles Rhyne Hoffman CFA... Yuri's 33% share of their market segment has been increasing (with even the big network boys as competitors), which is projected to grow at a CAGR of 57%! This is exactly my point... the perception is that YURI is winning business in the face of stiff competition from the "big network boys" is a fallacy. I don't think YURI has seen what competition is yet, and the fact that they're doing well now in no way reflects how well they'll do when the "big network boys" get serious... starting now with real preassure being brought to bear 2H 98. Finally... And Split Rock should be less than 10% of sales in Q1 (vs 50% in Q#:C97 and 35% in Q4:C97) Q1 could be well above the estimated revenues of $17.6MM. Sales through Bay is expected to be particularly robust It's true that the percentage of revenue from direct sales to SplitRock will come down..however it is my understanding that a percentage (I don't know how much) of BAY's sales will be to that very same customer - SplitRock. This all seems like a shell game to provide more comfort to investors. As far as sales from Ericsson...I think the release announcing their relationship even stated that Ericsson will be selling to SplitRock. As for LU...LU has their collective fingers in every pie. They're OEM'ing a number of access products - not just YURI's. And, given that YURI's products are much more pricey than competitive offering from NN and NT specifically, I have my doubts on their success rate here. Fundamental issues for YURI: 1 - Priced out of the market 2 - One product company 3 - Not a true carrier product (not NEB's) 4 - Not a enterprise product (See #1) 5 - Revenue balance weighted to one customer (direct or via OEM) 6 - No direct sales strategy (margin issue?) 7 - Weak Marketing/aliance building - different than simple OEM'ing Strengths they can leverage: 1 - #1 Market share in growing ATM market 2 - They have A product which works and is proven 3 - Technology. They have some unique capabilities they need to spin 4 - Strong OEM's. How can YURI assure that they're successful? Gary