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

To: LTK007 who wrote (29064)	3/8/1999 12:47:00 AM
From: Rainmaker	Respond to of 36349

<<am I correct that this Beta testing of the Avidia System is a critical moment in regards PairGain's future,or do I over-estimate this matter?>> M90, beta testing is important for a customer to make final decisions relating to: 1) compatibility with existing and planned architecture 2) current and future services 3) equipment performance vs. price 4) support. PAIR's future is dependant upon Avidia, but not 100% reliant. As they transition from a commodity "plugs" business (still 60% in 98) to a total solutions company, platforms like Avidia will obviously be more important to the bottom line. We will see in coming quarters the drop in HDSL revenue % due to price declines (which have bottomed and showing minor upturn) and shift in product profile sales (particularly in the PG Family and currently small revenue stream from Avidia). My guess is that HDSL revenue percentage will be less than 50% in 2H99. Currently, PAIR management is CONSERVATIVELY projecting $50M in Avidia sales for 99. This number includes integration of PG Family products, so the actual number solely attributed to Avidia is likely $20M for 99. Please bare in mind that this should be considered VERY preliminary and CONSERVATIVE estimates. If I had to venture, the actual number should be around 40% higher, if not more.