controller to connect old public service telephone network to the new IP networks. INPH is a networking company who makes the worlds best Broad band telecom controllers. they are 6-8 months ahead of competitors. 50% sequential Broad band rev to 3.24m this quarter just annuonced. Expected to make as much as 70m or more (conservatively) next year with these products. Should add to the market cap 1.4B today. (20 x rev) Motorola SUNW, Ziatech and Force are their partners in BB telecom controller market. Product is used to connect public service telephone wireline and wireless networks to IP networks. It is also used for broad band internet access and for wireless 2g,3b deployment. Major wireless OEM deal to be announced. (NOK?) . They also have the best performing fibrechannel Host bus adapters (based on Agilents tachyon technology) which are superior to competitors products (QLGC, EMLX, JNIC) who uses RISC based architecture causing server performance bottle necks. Going forward according to IDC forecasts the fibrechannel Storage Area Netwoking is going to grow from 250m in 1999 to 15 billion in 2003. Next leg of information revolution will be in the fibrechannel sector. Due to the superiority in technology INPH has grabbed 5 new fibrechannel OEM deals during past two months. NEC , HWP, ATON, land-5, and CMNT. Competitors only had none (just recycled old deals) INPH is undervalued selling at less than 1 x next years projected sales of 200m (75m from Broad band, 75 from fibrechannel and 50m from gigabit ethernet/fibrechannel combined products) valued 20 times cheaper than peers compared to price/sales. 600000 shares short and gives down side protection. No short want to remain for more than 3 months with major BB telecom ramp up and FC ramp up to follow in q4.<br>INPH selling at a huge discount runrate of 2 while competitors go at 10(JNIC,EMLX) 20 (QLGC)-170(BRCD same sector not a competitor) Recent BRCD (fibrechannel switch makers don't compete with INPH) CSCO deal makes SAN growth accelerate. Fibrechannel is far superior to Gigabit ethernet in speed and Quality of service and is predicted to grow and extend over WAN and MAN for many other future uses. INPH was the first to market (Only INPH makes these right now) and ship Gigabit ethernet/ FC adapters and this revenue could grow at 40% sequentially (350% annually) starting q3-q4. These adapters use ACEnic technology from ATON exclusively. These will take a huge market share from competitors due to huge cost savings it offers. (upto40% savings by using less servers) ATON has fastest growing ACEnic adapters. (according to recent delorro report) These cards have a hot market already and INPH is shaping up to have the giant share in this nascent market. (Easy 50m revenue from GE/FC adapter alone in 2001) Proper value is 20 x revenues. (1b)INPH should be worth 300% more right now. (compared to peers QLGC, JNIC , EMLX,) Recent earnings in the sector show acceleration of fibrechannel SAN depolyment. Especially the case for INPH broadband telecom and GE/FC adapter businesses. BB telecom is expected to ramp up revenues 200% by q3-4 and 75m by 2001. Many reseller initiatives were introduced as well. Selling to HWP, IBM, SUNW, (Old OEMs) are ramping up. 3NO signed up INPH on 06/21/00 for INPH ATM controllers. INPH poised take a huge market share of broadband telecom controller market connecting PSTN to IP networkds in wireless and wireline sectors as well as broad band internet accesss market for DSL and Cable modem based providers with worlds leading ATM controllers. Next year April revenues would be in 40m vs 13.5 million this april with over 200% growth.