Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Security Dynamics SDTI -- How much money can they make?? -- Ignore unavailable to you. Want to Upgrade?

To: Edward F. Horst Jr. who wrote (434)	4/18/1998 10:27:00 AM
From: Turs	Read Replies (1) \| Respond to of 1614

Maverick-NETA is not eating SDTI's lunch because, as Bulldozer said, they don't cross paths all that often. NETA does not have an authentication solution that I am aware of, they are not involved in digital certificates, and they have an inferior encryption offering. They are still a desktop company for the most part. So, that's not what's going on. Bulldozer-My understanding is that RSA may have been up a little sequentially but the growth is still below their expectations. Dynasoft sucked. Assume the card business was okay. I think the real problem is that the purchase of security for networks/access used to be a smaller purchase - one product and departmental in nature. Now, SDTI and others are trying to offer an enterprise-wide solution and that is making the decision more complex for organizations. Thus, the sales/evaluation cycle gets longer and near-term sales growth suffers. The other problem was a lack of buying ahead of the SecurSight release. My views anyway. I actually think the stock will be up after the call just because mgmt. will have finally communicated with investors/the Street. Investors, especially institutions, hate uncertainty and the stock is probably being unduly punished because of this. Have to believe that it is worth the risk to buy some here. Turs

To: Edward F. Horst Jr. who wrote (434)	4/20/1998 8:55:00 AM
From: Bulldozer	Respond to of 1614

Edward, Cylink seems to be a decent company with very good technology. Actually doing some work on it right now. Their Diffie-Helman encryption is basically second to RSA as it represents the 'Stanford' patents vs. RSA's 'MIT' patents. Their hardware based encryption also has various performance and security advantages to many software solutions. Throw in smart cards and their VPN product, PrivateWire, and you have a pretty good combination. Obviously also a take-over candidate. Also seems reasonably priced right now at roughly 20X forward. They have been transitioning from a heavily oriented research company to a sales and marketing company and earnings are expected to grow almost 100% from 1998 to 1999. Might be interesting. Bulldozer