Baidu.com, China's search engine company, skyrocketed this week, becoming the biggest mover in the Credit Suisse Disruptive Technology Portfolio. Its 1Q revenue was up more than 195% year over year, boosting its shares 37% at the time of the announcement and 40% for the week. Total revenue for the quarter was $16.9 million and earnings per share was 16 cents, well ahead of consensus estimates of $15.1 million in revenue and EPS of 12 cents.

Baidu recently implemented a sponsored link approach, similar to the one Google uses, and limited inventory to 10 links per page. The goal was to increase average revenue per user, and Baidu partially attributed its 1Q outperformance to the success of the initiative. In addition, the company strengthened its direct sales force to augment the distribution channel. This project resulted in a higher-than-expected new customer count. The stock reacted aggressively to both efforts because investors had expected increased competition to have a negative impact on Baidu's business.

Disruptive Technology Portfolio
		Stock Price 5/10/06	% Change Weekly	% Change Year To Date
AAPL	Apple Computer	$70.60	-0.8%	-1.8%
ATYT	ATI Technologies	$16.38	-1.5%	-3.6%
BIDU	Baidu.com, Inc.	$83.98	40.0%	33.5%
BBBB	Blackboard	$32.98	14.9%	13.8%
BRCM	Broadcom	$39.10	-4.1%	24.4%
CNQR	Concur Technologies	$15.96	-3.9%	23.8%
CRM	salesforce.com	$32.69	-4.7%	2.0%
CTSH	Cognizant Technology	$68.59	2.5%	36.4%
DRIV	Digital River	$46.76	2.5%	57.2%
EBAY	Ebay	$32.59	-4.6%	-24.6%
GOOG	Google Inc.	$402.98	2.2%	-2.9%
INFY	Infosys	$81.13	2.5%	0.3%
KNXA	Kenexa	$34.65	-2.1%	64.2%
MFE	McAfee	$26.42	-0.3%	-2.6%
MRVL	Marvell	$56.01	0.5%	-0.1%
NOVL	Novell	$8.10	-0.7%	-8.3%
NSR	Neustar	$36.07	3.5%	18.3%
NVDA	Nvidia Corp.	$29.52	-5.0%	61.5%
RHAT	Red Hat	$31.53	2.3%	15.7%
RIMM	Research in Motion	$73.68	-1.7%	11.6%
RNOW	RightNow Tech	$18.00	-5.8%	-2.5%
TLEO	Taleo	$14.53	10.1%	9.4%
TIBX	TIBCO, Inc.	$8.70	-0.3%	16.5%
TXN	Texas Instruments	$33.70	-3.2%	5.1%
ULTI	Ultimate Software	$24.27	-3.8%	27.3%
VRSN	Verisign	$23.22	-1.0%	6.0%
WEBX	WebEx Communications	$34.54	-0.8%	59.7%
WIND	Wind River	$11.43	3.4%	-22.6%
WIT	Wipro	$14.07	1.4%	17.7%
YHOO	Yahoo! Inc.	$32.09	-0.2%	-18.1%
	DTP Index Value	237.91	2.3%	7.8%
SPX	S&P 500	1,322.85	1.1%	6.0%

© 2006 Credit Suisse. Important disclosure information about potential conflicts of interest regarding the companies referenced above may be obtained at csfb.com/researchdisclosures, or by E-mailing equity.research@csfb.com or calling 1-877-291-2683.

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