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To: rascalbythesea who wrote (13657)	5/22/1999 4:43:00 AM
From: rascalbythesea	Read Replies (1) \| Respond to of 42804

Strong buy recommendation in Barrons today. By L.H.Friend

To: rascalbythesea who wrote (13657)	5/22/1999 8:42:00 AM
From: Sector Investor	Read Replies (1) \| Respond to of 42804

<<I still don't see the value we got from Xyplex.(Edgeblaster & Edgeguardian have yet to succeed) and the write-offs brought us nothing but grief.>> Da code, boss! Da code! Look at all the protocols supported in all the new products. Do you think we had a hundred programmers working for 5 years, writing that? Do you know how many YEARS it would take afterwards to get all the bugs out of new code? Do you think customers would put up with that when CSCO and others have reliable products? How many sources of reliable networking code do you think are out there? And who will give it to competitors? Before Xyplex we had commodity Ethernet and IP switches that were protocol poor - hence low end commodity stuff, subject to intense competition, pricing pressure and margin erosion. After Xyplex we have hundreds of years of STABLE, DEBUGGED, PROVEN RELIABLE networking code. That alone is worth what we paid for Xyplex, IMO. Look how quickly the new products are coming out. I'm sure you will see that code in the ASICs Charlotte's Web will be using, and probably MetroFusion too. Then we got: A domestic sales staff instantly doubling the staff, a new domestic customer base, new East coast facilities, 8 patents, many R&D personnel, a large step to grow their infrastructure, vastly improved customer support, a mindset towards consulting income (that deferred revenue line that suddenly appeared) EdgeBlaster and EdgeGuardian will be fine - they just needed some reworking for additional features before customers have what they need. This is almost done now. The Xyplex acquisition was just fine too. You wouldn't see these new products and opportunities without it.