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Goldman Wary on Net App

Network Appliance Inc. (Nasdaq: NTAP) came in for a further beating Tuesday evening from Goldman Sachs & Co., which
released a report saying that Net App may miss the bank's revenue estimates when it reports its first-quarter earnings August 14.

The news is at odds with midday activity on the Nasdaq Wednesday, as Network Appliance's stock soared 23 percent from yesterday's close. Net App had no explanation for the increase.

Analyst firms Wit Capital Corp. and First Union Securities have both been bullish on companies in the storage sector this week, which might be fueling the gain (see First Union Initiates SAN Coverage ).

Analyst Laura Conigliaro, the author of the Goldman report and one of the storage industry's leading savants, says, Although we
have been forecasting revenues below company targets of around $225 million, we think our estimate of $218 million may still be too high.”

Consensus estimates from First Call suggest revenues of about $214
million.