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Technology Stocks : CyberGuard Corp. (CYBG) -- Ignore unavailable to you. Want to Upgrade?

To: stephen allen who wrote (1565)	4/30/1998 1:04:00 PM
From: SteveS	Read Replies (1) \| Respond to of 2616

Stephen, I disagree. At the early product introduction phase, which is where CYBG is at with the NT product, market penetration, market acceptance, and volume are much more important than early profits. The profits will multiply once market share is established. I think they realize that clearly, and are pricing accordingly. In many regards, this is still a new company, establishing new products, and making very good progress at it. We investors sometimes loose sight of that in our impatience to see a return. Everything I have seen has reinforced my belief that this is a long term hold, that will have volatility, but will be very rewarding downstream.

To: stephen allen who wrote (1565)	4/30/1998 1:53:00 PM
From: uu	Respond to of 2616

Stephen: > a 108% unit gain that translates into a 25% revenue gain is not* as impressive as you make it sound.* When you have a business model that tries to capture a good chunk of a very growing market with a lot of compettitors, you always try to establish your market share and leadership, and then worry about the pricing and making profits in that sector. For an example of what I am talking about look at the DB server market in the low end. Microsoft NT is growing very rapidly and yet Oracle has over 41% of the market share with Microsoft having 37% of the market! Microsoft is now practically giving away its SQL server and yet is having a heck of tough time catching up to Oracle who is charging nicely with very impressive margins for its Db servers running on NT! You know why?! It is not that Oracle DB is any better than that of Microsoft (in fact in some features Microsoft's is better!), but Oracle started by concentrating on taking the market share and not worrying about the profits while the arogant Microsoft started the opposite (since after all NT is its bread and butter of OS). Doubling the unit sales growth is a very strong indication (to me anyway) that CYBG is rapidly growing and while Microsoft can not buy Oracle (!) when it comes to selling Database for its NT operating system, I am sure if they want to get into the security business they can buy an already established but small leader in the sector (namely CYBG)! Give CYBG another 3 to 6 months and watch how the valuations of the company will double or more (look at ISSX for gods sake with half as many as established products as CYBG)! Regards, Addi Jamshidi