TECH TALK By Paul Motter (MF Networx) (Apr. 18, 1997) -- Hello dear readers... Motley Fool has undergone a big change recently, as you all know. Many faces have left us, sadly, and a fortunate few remain. I am one of the lucky ones, indeed. It will be my honor, and my duty, to serve you as the host of the networking industry folder for the foreseeable future. It will be my sole responsibility for the next few months, and then Leeza Rodriguez (MF MOM) will be rejoining me sometime late this summer. Leeza is a favorite of us all, and we look forward to the day when she returns. I'm sure she will be with us during the next few months as a regular contributor even if in an unofficial capacity. There are new responsibilities for the industry hosts now, and you will be the beneficiaries. Motley Fool has vowed a new commitment to a level of service we couldn't offer before. I will be online many hours a week to offer weekly updates, news, and analysis on the networking industry. I will attempt to answer any questions posed in the Networking Industry folder to the best of my ability. I look forward to communicating with each and every one of you. What's new in networking this week? - - - - - - - - ANCOR COMMUNICATIONS, INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: ANCR)") else Response.Write("(Nasdaq: ANCR)") end if %> announced the resignation of Chief Executive Officer Steve O'Hara. The company's vice president of engineering and operations, Calvin G. Nelson has been promoted to president. Ancor intends to seek a new CEO to fill the vacated position. Ancor's stock price has been suffering lately as competition in the fibre channel market grows. Not only is there a new competitor in the wings, Brocade Communications Systems, Inc. (not a publicly traded company), but a recent setback concerning the development of fibre channel storage solutions with SEQUENT COMPUTER SYSTEMS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq:SQNT)") else Response.Write("(Nasdaq:SQNT)") end if %> derailed investor confidence and sent the stock price plummeting. LUCENT TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: LU)") else Response.Write("(NYSE: LU)") end if %> reported 12.5% revenue growth -- 16.1% growth on continuing operations and net income of $66 million, or $0.10 a share for the quarter ending March 31, 1997, on revenues of $5.149 billion. In the same quarter of 1996, Lucent reported a loss of $103 million on revenues of $4.577 billion. This included a 23% rise in their network systems operations including switches to RBOCs and Competitive Access Providers (CAPs). Lucent noted it is seeing growing industry support for its K56flex(TM) modem chip set, which will enable modems to download Internet information at speeds up to 56 kilobits per second. AMERICA ONLINE <% if gsSubBrand = "aolsnapshot" then Response.Write("(NYSE: AOL)") else Response.Write("(NYSE: AOL)") end if %> recently announced it would conduct a field trial of K56flex early this summer. The company will be using Ascend MAX TNT remote access switches to supply the 56k access. Lucent claims that more than 600 Internet Service Providers and PC and modem manufacturers now plan to use K56flex technology. Upgrades: Salomon Brothers said it initiated coverage of PAIRGAIN TECHNOLOGIES <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: PAIR)") else Response.Write("(Nasdaq: PAIR)") end if %> as a buy. The firm set a $36 price target and said it expects PairGain to grow its 1997 top line by 62% to $333 million and increase earnings per share to $0.83. Hambrecht & Quist raised Q2 estimates on Pairgain Technologies Inc to $0.20 a share from $0.18 and raised revenues estimates to $77.2 million from $75.6 million. It maintained its buy rating. Smith Barney analyst Jonathan Cohen confirmed he upgraded NETCOM ON-LINE COMMUNICATIONS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: NETC)") else Response.Write("(Nasdaq: NETC)") end if %> to buy from underperform. Hambrecht & Quist cut its rating on SUN MICROSYSTEMS INC. <% if gsSubBrand = "aolsnapshot" then Response.Write("(Nasdaq: SUNW)") else Response.Write("(Nasdaq: SUNW)") end if %> to buy from strong buy, and raised its earnings estimates after Sun reported March quarter earnings late on Tuesday. It raised its fiscal 1997 earnings estimate to $1.88 a share from $1.83 and fiscal 1998 to $2.30 from $2.05. Salomon Brothers said it raised its 1997 earnings estimate on Sun to $1.86 a share from $1.73 a share and raised the 1998 earnings estimate to $2.22 a share from $2.07 a share. The firm reiterates a buy rating.

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