They say good things come in small packages, but that's not necessarily true -- especially if you're a newlywed unwrapping the eighth toaster you've gotten from well-meaning family and friends. But what if, instead of two slices of bread, that toaster-sized gadget could hold up to two terabytes of data?
That's exactly what Newisys, a Sanmina-SCI (NASDAQ:SANM) company, has developed. The NA-1400 system, which incorporates Intel (NASDAQ:INTC) technology, offers small and midsized businesses a simple, plug-in-and-go storage solution. It connects to networked personal computers and other home-based electronic media devices, allowing greater flexibility in storing important data, music, videos, photos, and much more. The NA-1400 will be available through Bell Microproducts in different storage capacities, at projected prices ranging from $899 to $2,999. Competitors include systems from Network Appliance (NASDAQ:NTAP) and EMC (NYSE:EMC), but these seem to be priced on the higher end. Bottom line: The new Newisys product is affordable, secure, small, and can hold a bundle of data.
Why am I buttering up this product? Well, I love exciting new toys, and as a Sanmina shareholder, I can see this neat little gadget boosting the company's fortunes. Although its share price has plummeted from around $15 in January 2004 to nearly $4 to date, the company is no shaky jelly. Sanmina is a Fortune 500 corporation and a key manufacturing supplier for big boys like Motley Fool Stock Advisor pick Dell (NASDAQ:DELL), Sun Microsystems (NASDAQ:SUNW), Hewlett-Packard (NYSE:HPQ), and IBM. Nonetheless, the company has struggled as increased integration and restructuring costs, manufacturing inefficiencies, and end-market demand have eaten into Sanmina's earnings and scared off investors.
Is the future looking brighter? While the electronic manufacturing sector has been stale so far this year, it's expected to get a boost in demand in the second half -- due mainly to the year-end corporate budget shuffle and consumer holiday spending. If data storage trends continue, with more data generated and greater emphasis placed on security and diligent record-keeping, Sanmina's toasty gizmo could increase revenues.
However you slice it, investors willing to buy and hold Sanmina could eventually reap rewards from the tech guru's innovative gadgets.
Further fully electronic Foolishness:
Fool contributor M.D. Mitchell is down the street at the local junkyard looking for some good trash. He thinks burnt toast tastes better with more butter. He owns shares of Sanmina and IBM, but holds no financial position in any other companies mentioned above.
