CALABASAS' XYLAN UNVEILS DEALS WITH IBM, BELLSOUTH.Byline: Deborah Adamson Daily News Staff Writer Xylan xylan /xy·lan/ (zi´lan) any of a group of pentosans composed of xylose residues; major structural constituents of wood, straw, and bran. Corp. said Wednesday that it entered into a service agreement with IBM (International Business Machines Corporation, Armonk, NY, www.ibm.com) The world's largest computer company. IBM's product lines include the S/390 mainframes (zSeries), AS/400 midrange business systems (iSeries), RS/6000 workstations and servers (pSeries), Intel-based servers (xSeries) and also received a three-year contract from BellSouth to supply it with network switching products. IBM will service Xylan's customers in a four-hour on-site program, initially launched in 30 cities nationwide. The computer maker will carry spare products and train its field personnel to assist Xylan customers. BellSouth's contract calls for using Xylan's OmniSwitch and PizzaSwitch products to speed up and broaden customer local area network connections. ``The potential revenue from phone companies is huge,'' said John Mazzaferro, Xylan director of corporate marketing. ``Once you're in one (Bell company), it's much easier to get into another one.'' Xylan closed at 21-3/8 on Wednesday, up -7/8. Analysts said the IBM service agreement was a natural progression from Xylan's existing venture with the computer giant to develop network switching products. Xylan's deal with BellSouth also has been rumored for some time, they said. ``It's somewhat expected,'' said Erik Suppiger, research associate of data networking at Deutsche Morgan Grenfell in San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden . His company recently downgraded the stock from ``buy'' to ``accumulate'' after company officials said an expected growth in revenue will be pushed back. The once high-flying stock - whose first day IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. gain of 124 percent to 58-3/8 eclipsed even the stellar performance of Netscape - has been coming down since Xylan went public in March 1996. The stock price recently took a pounding after the company officials deflated de·flate v. de·flat·ed, de·flat·ing, de·flates v.tr. 1. a. To release contained air or gas from. b. To collapse by releasing contained air or gas. 2. Xylan's growth prospects, to the surprise of several analysts. Don Miller, chief analyst for networking service at Dataquest, a San Jose San Jose, city, United States San Jose (sănəzā`, săn hōzā`), city (1990 pop. 782,248), seat of Santa Clara co., W central Calif.; founded 1777, inc. 1850. market research firm, said Xylan's meteoric me·te·or·ic adj. 1. Of, relating to, or formed by a meteoroid. 2. Of or relating to the earth's atmosphere. 3. IPO rise likely was the result of an euphoric stock market. Mazzaferro explained that technology stocks tend to be volatile, and Xylan is no exception. The company also needs to establish a longer track record among investors, he said. Xylan is a three-year-old firm. |
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