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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (2329)	4/6/1998 5:13:00 PM
From: dougjn	Respond to of 6021

Paul, do you remember what the market psychology was attendant to the strong tech stock (and moderate market) decline in the Feb-April period last year. (I can't really.) Psft for example took a pretty bad percentage hit during that period. Of course its up big since. Doug

To: Chuzzlewit who wrote (2329)	4/6/1998 6:05:00 PM
From: Mike V.	Respond to of 6021

I believe NETA will achieve their EPS this quarter. I believe they will achieve their EPS goal because they "Stuffed" a ton of inventory into their channel partners at the end of the quarter. I wonder how Tech Data and Ingram Micro will feel at the end of Q2 when they still have the inventory? Bill just fired (on Monday April 6th) a large portion of the Total Network Visibility group (Network General, NGC). Bill, what did you get when you paid a BILLION PLUS for NGC. NGC brought 4 major assets to the McAfee marriage. 1. Sniffer 2. CyberCop security detection 3. Software performance tools; SLM, RouterPM etc 4. The NGC field organization Let's look at each components of NGC: According to industry analysts the Sniffer market is growing at 15% per year. The original Sniffer product is arguably the most successful network management tool in the industry and there is no reason to think this will change. CyberCop presents a different set of problems. This product is based on technology licensed from the Wheel Group. In addition, the CyberCop product line is the basis for the NETA advertising campaign, "Who's watching your network?" In February 1998, the Wheel Group was acquired by Cisco. I have been told that Cisco will not renew the Wheel Group license next year. Will Bill knowingly sell a product that has a 1-year life? The NGC software products were developed in Beaverton OR and Nashua NH. Monday April 6th was a bad day for both organizations as EVERYONE IN BOTH GROUPS WAS FIRED. Again I ask the question, how long will Bill sell products, SLM and RouterPM etc, that will never be enhanced. NETA has stated in their SEC filings that a key objective for the merged companies is to develop a sales team capable of selling "solutions" and not just products to large end users. The McAfee sales force is primarily a telephone sales team. They are very aggressive with their anti-virus products but lack the polish and experience to sell "solutions". The old NGC sales force has the contacts at corporate sites to pitch "solutions" however a large number of them have resigned. More importantly, NGC had a very strong field technical pre-sales organization; before all of the resignations. These technical pre-sales specialists are critical for direct and channel sales. If NETA has to re-stock the field sales and support organizations then the probability of earnings miss-step increases. Now I know that most of the people on this thread feel Bill can do just about anything, but at the rate he is firing people and others are resigning from this "can't miss" company I suggest that the people that work at NETA feel the future is in doubt.

To: Chuzzlewit who wrote (2329)	4/7/1998 12:25:00 AM
From: AlienTech	Read Replies (1) \| Respond to of 6021

If this is true Paul we are toast.. Yikes gona do a SDTI soon.. hope you are wearing your lead underwear. With 96% owned by institutions i wonder what they will do. RE: consolidation of development long_on_neta Apr 6 1998 11:54PM EDT While this may be presented to the rank and file as a consolidation....it's not. This consolidation is based on the failure of Network General to deliver.....plain and simple. Bill has recognized the failure and is trying to save himself into the 1998 EPS estimate. Once the street understands the stock price will reflect the future value of the company...and the value is south of $60 per share. Network General took McAfee for a Billion Plus. News from Turk turk_182_SFO Mar 30 1998 2:58PM EST I hope you will be as quick to question Bill L.'s ethics when NETA misses the 1st quarter EPS target of $0.54. As of Monday March 23rd, US quarter to date sales totaled $45 million on a quota of $125 million. NETA sales management has revised the revenue goal for the 1st quarter downward from $125 million to a range between $75 and $90 million. Lots of prayers being said as well as plans for layoffs. There is weakness across all sales offices and product lines, however the major problem is in the sniffer market. The sniffer indirect channel was "stuffed" at the end of December and major inventory problems exist. The senior management team is furious with Bill L. and the comments he made on Tuesday March 24th regarding his comfort level with the 1st quarter EPS target of $ 0.54. Bill L. made these comments while he was fully aware of the revenue shortfall problem in the US. The management team now expects a shareholder lawsuit that NETA cannot win! You are now informed, do with this info as you see fit!