STOCKREPORTS

Auspex Systems, Inc.

NASDAQ Symbol ASPX In S&P SmallCap 600

Recent Price 9.88 52 Wk Range 16.38 - 7.56

Yield Nil 12-Mo. P/E 11.6

Quantitative Evaluation: Outlook (1 Lowest - 5 Highest) 5- Fair Value 16.30 Risk HIGH Earn/Div Rank NR
Technical Evaluation: BEARISH since 04/97 Rel. Strength Rank (1 Lowest - 99 Highest) 23 Insider Activity Neutral

Business Profile 13-MAY-97

In April 1997, Auspex Systems said that it is now more cautious about near-term growth prospects and, given its increasing level of investment in R&D, it expects fourth quarter FY 97 (Jun.) earnings to be at or modestly below the record third quarter FY 97 level. New products introduced during the FY 97 third quarter include DriveGuard, FastBackup, and NS 7000/700 system HA NetServer. DriveGuard is designed to provide additional storage protection options for data that customers want to protect but does not require more expensive disk mirroring. FastBackup provides the parallel transfer of data from disk controller to tape without moving data across the backplane. The NS 7000/700 system HA NetServer is bundled with the DriveGuard and FastBackup products.

Operation Review 13-MAY-97

Revenues for the first nine months of FY 97 (Jun.) advanced 29%, year to year. Despite the higher sales, margins narrowed, reflecting larger increases for both cost of service and research and development expenses. Thus, the gain in operating profit was trimmed to 19%. Following taxes at an effective rate of 35.5%, versus 33.0%, net income was up 15%, to $15,661,000 from $13,613,000. Share earnings amounted to $0.61, against $0.53.

Stock Performance 18-JUL-97n

In the past 30 trading days, ASPX's shares have declined 5%, compared to a 7% rise in the S&P 500. Average trading volume for the past five days was 128,560 shares, compared with the 40-day moving average of 296,221 shares.

Key Stock Statistics

Fiscal Year Ending Jun. 30

Dividend Data: No cash dividends have been paid. A "poison pill" stock purchase rights plan was adopted in 1995.

Business Summary 20-MAY-97

As the data explosion continues, companies are making more information available to a growing and diverse constituency of employees, vendors, customers and shareholders, and it must be available 24 hours a day, seven days a week. Auspex Systems has responded to this daunting challenge with a unique family of high-performance, network data-serving solutions, including a full line of network data servers, high-availability software products and data storage management solutions -- each designed to meet businesses' need for fast, reliable and continuously available access to information.

The traditional approach for moving data -- using multiple general purpose servers that are designed to perform "compute" tasks such as transaction processing and applications -- typically results in degraded performance when the amount of network traffic increases. Auspex's unique family of high-performance network data-serving solutions offer a fundamentally different approach to delivering immediate and secure access to information. The Auspex NetServer is based on a patented system to "serve" large amounts of data quickly and reliably to the desktop.

The company's core business ranges from the semiconductor industry, where huge files containing design information on the latest generation of microprocessors are under development, to software companies where a terabyte of source code files and libraries are shared among hundreds of developers in concurrent engineering environments.

As more companies struggle to manage their growing data requirements, Auspex has found an opportunity to provide solutions to segments with similar data management challenges, such as mechanical computer-aided design (MCAD) environments in the automotive and aerospace industries, seismic data analysis by engineers for oil and gas exploration, as well as Internet service and on-line providers.

In 1995, Auspex commenced shipment of its first software product, DataGuard, which allows users to continually access their data in the event of a disruption associated with the UNIX host operating system. In March 1996, it introduced its second software product, ServerGuard, which provides a local and wide area network-based fail-over and disaster recovery system.

In March 1997, ASPX broke ground on a new 269,000-square-foot, four-building leased complex in Santa Clara, CA, scheduled for completion in the first quarter of calendar 1998.

Capitalization

Long Term Debt: $50,000 of lease obligs. (3/97).

Curr. Ratio	4.5	3.6	4.1	4.7	2.8	NA	NA	NA	NA	NA
% LT Debt of Cap.	NM	0.2	0.6	1.3	3.1	NA	NA	NA	NA	NA
% Net Inc.of Revs.	12.2	10.7	10.0	11.1	9.5	NA	NA	NA	NA	NA
% Ret. on Assets	16.3	12.9	10.3	7.1	22.2	NA	NA	NA	NA	NA
% Ret. on Equity	20.8	16.8	13.0	10.2	39.8	NA	NA	NA	NA	NA

Data as orig. reptd.; bef. results of disc. opers. and/or spec. items. Per share data adj. for stk. divs. as of ex-div. date. E-Estimated. NA-Not Available. NM-Not Meaningful. NR-Not Ranked.

Office--5200 Great America Pkwy., Santa Clara, CA 95054. Tel--(408) 986-2000. Website--http://www.auspex.com Pres & CEO--B. N. Moore. VP-CFO & Investor Contact--Kent L. Robertson. Dirs--L. B. Boucher, R. S. Cheheyl, W. F. King, D. F. Marquardt, B. N. Moore. Transfer Agent & Registrar--Boston EquiServe, L.P. Incorporated--in California in 1987; reincorporated in Delaware in 1991. Empl-- 515. S&P Analyst: C.F.B.

This report is for information purposes and should not be considered a solicitation to buy or sell any security. Neither S&P nor any other party guarantee its accuracy or make warranties regarding results from its usage. Redistribution is prohibited without written permission. Copyright © 1997