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Netopia Inc. (NTPAE) Message Board

  • deeselyess deeselyess May 15, 2001 7:46 AM Flag

    trying 2 understand?

    I can't unserstand the profile - what does the e-commerce platform business have to do with DSL equipment? Is this company in too many businesses? Does any1 know if they r making $$ on this line of business? Is it active, or just a mirage?

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    • deeselyess,

      Regardless of what anybody on this board thinks, Netopia is a software company first, hardware second. Even though it is the hardware platform which makes the majority of the revenue, it is all based on the IOS/firmware/code they have in the platform that really helps the product sell. Not big flashy processors or the ability to connect to big pipes like an OC3.

      The Netopia product line consists of routers, coming soon IAD's, an e-commerce platform, and several software programs such as Timbuktu and Net Octopus for system management as well as the ecommerce needs of the SMB market. As you can see, all software driven.

      This company is in the business of providing products and services for small & medium sized business to take advantage of the internet. A pretty broad goal, but that is what they do, through esupport, ecommerce platform, and connectivity. They are branching their hardware capabilities into wireless and voice.

      The great thing for Netopia and their target audience is that there are so many of these SMB's still running off of analog and have no website. When they do increase their bandwidth and bring on new applications to run their business, they will need the connectivity & support, & Netopia has built a product line that will encompass all of these areas.

      ajb77098 mentioned that VZ YP is selling the platform, and not access group. Why does it have to be that web platform/e-commerce is a function of access? The end user customers don't host a thing with this product. They could still have their analog connection to dial up for access and pull orders down if they wanted to. Furthermore, it makes perfect sense that Yellow Pages, a piece of the phone company that provides advertising for businesses of all types, would look to offer a service like this to customers. It is a no brainer.

    • Do you go over to the GE board and tell them they're in too many business? What do stoves have to do with medical devices?
      Maybe DSL equipment is used to connect to the internet and e-commerce is used to do business on the internet? Think they're related somehow.
      Also maybe try reading their Quarterly report.
      "``The second quarter remained challenging,'' said Alan Lefkof, President and CEO of Netopia. ``However, during the quarter we demonstrated our commitment to expanding our product offerings and distribution channels by delivering new DSL Internet equipment products. Furthermore, Verizon and BellSouth successfully launched new services using the enhanced Netopia Web Platform."(e-commerce).

      • 1 Reply to harry325
      • Now I get it thank u strategy guru. Let me replay your insight. The US Postal Service should get into the housecleaning business because they visit every neighborhood and have trucks and people with names on their uniforms. Wow, how could I have missed it! Thank u so much!

        I was looking for someone to give me some logic about the multiple business thinking of NTPA. The explanation "because GE does it, then it's brilliant" is just dumbass.

        To repeat the question(can a less asinine person respond to this?)- Why is a manufacturer of DSL hardware a logical leader in ecommerce software? Aren't they really just diminishing their focus, and impinging on their ability to compete in their main business? If I want to diversify, I buy multiple stocks. Does anyone know what the analysts say?


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