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Technology Stocks : All About Sun Microsystems -- Ignore unavailable to you. Want to Upgrade?

To: Xpiderman who wrote (13935)	1/22/1999 11:38:00 PM
From: E_K_S	Read Replies (2) \| Respond to of 64865

Comments on Conference Call.... Sunw's service business up 38% and growing! European sales very strong again up over 25%. (vs prior year) Management expects this growth to continue for several quarters...."longer term". Storage business now generating free flow cash flow which is contributing to the bottom line. Sunw feels that their product line up will now compete significantly with the EMC systems. Management stated that they should obtain more "wins" over EMC in 1999 (more on this next week with new product announcements). Sunw continues to repurchase stock.... $365 million free flow cash flow ....the cash machine continues. =================================================== With the AOL/Netscape deal Sunw will not only sell more hardware but I anticipate that the Sunw's "Service Business" will continue to be one of Sunw's best "new" growth areas going forward. This is a high margin sector too. Therefore, a higher PE for this business is justified. ==================================================== I do not expect any significant growth in software revenues this year including Solaris, Java and Jini; BUT if SUNW can implement their next year business plan, we should begin to see these revenues begin to take off in the year 2000 and beyond. ===================================================== In summary, the big surprise to me was Sunw's success in their service business. EKS