3PAR Stock Shoots Up Following Takeover Talk

Posted 12/30/2009 at 5:03am | by Paul Lilly

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Investors of 3PAR Data, maker of storage arrays for open-systems and online storage environments, may want to send Dow Jones a bottle of wine. Why? It just seems like the thing to do when the company's stock jumped 12 percent following a report in Barron's, Dow Jones' financial rag.

The article suggested 3PAR was a "takeover target," pointing out that the company is on pace to record $195 million in sales in 2009, with no debt and some $104 million in cash and equivalents. And even though 3PAR has lost money every year for the past five fiscal years, sales for the company's exotic disk arrays have grown steadily.

"Over the past decade, we have seen more than 10 start-ups, each aiming to be the next EMC," said Kevin Hunt, a senior technology analyst at Hapoalim Securities. "3PAR is the only survivor. In my view, they will likely continue to take market share from all their bigger rivals."

According to Barron's, 3PAR's greatest asset is that "the company's data storage systems do more with less."

Image Credit: redwing.hutman.net