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Technology Stocks : Xylan -- Ignore unavailable to you. Want to Upgrade?

To: jach who wrote (2639)	10/13/1998 9:45:00 PM
From: Lorare	Respond to of 4135

The following is a recent review of Xylan's presentation at the BT Alex. Brown tech conference (my apologies for the format, I'm not as good at this as some of you): -------------------------------------------------------------------------- > ----- > XYLAN CORPORATION (XYLN) "BUY" > > Update From BT Alex. Brown Incorporated Technology Conference > > -------------------------------------------------------------------------- > ----- > > > Date: 10/12/1998 EPS: 1997A 1998E 1999E > > Price: 11.06 1Q 0.13 0.18 0.25 > > 52-Wk Range: 31 - 10 2Q 0.07 0.20 A 0.27 > > Ann Dividend:0.0 3Q 0.10 0.21 0.28 > > Ann Div Yld: 0.00% 4Q 0.14 0.24 0.29 > > Mkt Cap (mm):536 FY(Dec.) 0.44 0.83 1.10 > > 3-Yr Growth: 40% FY P/EPS 25.1X 13.3X 10.1X > > CY EPS 0.44 0.83 1.10 > > Est. Changed No CY P/EPS 25.1X 13.3X 10.1X > > -------------------------------------------------------------------------- > ----- > > > HIGHLIGHTS: > > > > -- Management focused primarily on Xylan's technology directions with > > particular emphasis on the recently announced OmniSwitch S/R. The > OmniSwitch > S/R is expected to be generally available this quarter and could > contribute > modestly to 4Q revenue. At $220 per 10/100 port the Company has the > enviable > distinction of the lowest cost, chassis-based Fast Ethernet switch. > > > > -- The Company stated the OEM revenues for 3Q should be in-line with > previous > guidance, which calls for OEM revenues to decline sequentially. Xylan is > due > to officially report 3Q results on Wednesday, October 13 after the market > > close. > > > > -- The Company expects continued gross margin stability, and gross margins > > could benefit from an increased emphasis on direct and VAR revenue. > > > > -- The Company's sales productivity continues to increase and has no > meaningful > exposure to the financial services industry, which has been a concern with > > respect to potential technology spending cutbacks. > > > > -- In a separate announcement, Alcatel announced a definitive agreement to > > acquire Packet Engines, a private networking company based in Spokane, > > Washington. Alcatel is a major OEM partner for Xylan. We believe the > > near-term impact will be minimal as Packet Engines does not offer a > comparable > breadth of product solutions. In our opinion, a likely scenario would be > for > Alcatel to focus on Packet Engines products for network core applications, > but > emphasize Xylan's more cost-effective, value-added services switches for > > higher-volume wiring closet deployments. > > > > Additional Information Available Upon Request > > >