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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Bosco who wrote (5993)	5/21/1998 9:48:00 AM
From: JDN	Read Replies (1) \| Respond to of 6980

Dear Bosco: ''First quarter shipments of the Accelar routing switch product family broke all records as the most successful introduction of any new product family in Bay Networks' history,'' THIS was MUSIC to my ears!! That ought to answer the critics. JDN

To: Bosco who wrote (5993)	5/21/1998 4:40:00 PM
From: bgg	Read Replies (2) \| Respond to of 6980

Press releases like this make me laugh. -- It mentions percentage market share of revenues and ports shipped, but doesn't give the actual dollar signs and port counts. Put those in the press release, and people would realize that there just isn't much of a market yet. By the time the market is worth 5 Billion, Cisco will own the majority of that share. Count on it. According to the Dell Oro report: Actual Bay total revenue from layer 3 switches: $45 million -- doesn't seem like such a big deal any more ... and even worse (this press release is all about spin..) Actual Bay total revenue from Gigabit Ethernet switches: $300,000 from 200 ports (not switches) shipped. That's what the press release is referring to with the "19% market share in Gigabit Ethernet." So with market numbers like that, why is it such a huge deal that Bay shipped L3 switching before Cisco? Here's some real numbers from the Dell Oro report that are both more telling and more material: Total Switched Ethernet sales: (10 Mbps, 100 Mbps) Bay (Q397, Q497, Q198) $142 million, $173, $90 Cisco (Q3, Q4, Q198) $503 million, $511, $661 Bay's share has dropped from 13% to 6% in ONE quarter Cisco's has jumped from 38% to 50% I think this is a much more telling picture, and one I doubt you'll ever see in a Bay press release.