Mcdata
Profit & Loss
(1Q00 and 2Q00)
(in millions)
1Q2000 2Q2000
Revenues $ 47.1 (100%) $ 56.5 (100%)
Cost of Revenues 22.5 ( 48%) 27.5 ( 49%)
Gross Profit 24.7 ( 52%) 29.0 ( 51%)
Operating Expenses
R&D 7.6 ( 16%) 9.6 ( 17%)
SG&A 7.2 ( 15%) 9.7 ( 17%)
Amortization 0.9 ( 2%) 0.9 ( 2%)
Total Operating
Expenses 15.8 ( 33%) 20.2 ( 36%)
Operating Income 8.9 ( 19%) 8.8 ( 16%)
Net Income 5.3 ( 11%) 5.5 ( 10%)
Source: S1/A filed 7/19/2000
Mcdata's quarterly revenues
(in millions)
Product Product Service
Revenue Revenue Revenue Total
(EMC) (IBM/Others) (ESCON/EMC)
1Q99 $ 4.8 $ 2.9 $ 5.5 $ 13.2
2Q99 8.5 6.6 5.9 21.0
3Q99 13.2 6.6 2.9 22.7
4Q99 21.6 13.4 3.4 38.4
1Q00 29.3 13.8 4.1 47.2
2Q00 39.5 12.7 4.2 56.5
Notes:
Revenue (IBM/Others)
- This consists partly of FICON bridge cards
sold exclusively to IBM. FICON provides fibre
channel connectivity to IBM's large ESCON
mainframe installed base.
- FICON went from $1 million in revenues for the
first 6 months of 1999 to $13.4 million in
revenues for the first 6 months of 2000. The
balance consists of director switches sold to
other customers.
biz.yahoo.com
Service Revenue
- ESCON revenues recognized by EMC, which pays a
service fee to Mcdata for the design and
manufacture of those directors.
- As IBM's exlusive ESCON supplier for the past
6 years, Mcdata controlled over 80% of ESCON
market through IBM and EMC connection.
- ESCON revenues peaked in 1997.
Customer Mix
1998 1999 2000 (6 months)
EMC 86% 69% 74%
IBM 2% 11% 13%
HWP 3% 13% -
Others 9% 7% 13%
Competition
(in millions)
Mcdata Ancor Brocade Inrange
(Total)
1Q99 $ 13.2 $ 1.5 $ 8.0 $ 24.6
2Q99 21.0 3.6 10.5 26.6
3Q99 22.7 4.0 20.0 25.1
4Q99 38.4 3.8 30.1 24.0
1Q00 47.2 6.9 42.7 23.1
2Q00 56.5 8.5 62.1 26.1
Market
Cap ~$8.5+B ~$6.0+B ~$22.5+B IPO
Notes:
Mcdata
- January to December fiscal year
- revenues consist of ESCON service fees, FICON and
FC director switches, SCSI to FC switches, EFC software
- FC director switches introduced in mid-1998.
- per Emulex, major FICON/SAN upgrade cycle will start
in 2Q2000.
- per IDC, ESCON/FICON SANs (with FC Director Switches)
will comprise 25% of ALL SAN revenues in 2001.
- per IDC, FC director switches carry 300% to 500% price
premiums over FC switches.
Translation: double whammy for Mcdata, which has IBM
as the exclusive customer of its ESCON Directors/
FICON bridge cards/ASICs and which has EMC and IBM
as the primary customers of its FC directors and
hardware.
Ancor
- January to December fiscal year
- 8/1/2000 merger with QLogic
- FC switches, FC director switches, software
Brocade
- October to September fiscal year
- FC switches, software,
- ~70-80% of FC switch ASICs, NO director switches
- 3Q2000 (June quarter) earnings on 8/16/2000
Inrange
- ticker symbol: INRG
- January to December fiscal year
- amounts represent ESCON/FC storage networking
revenues which account for about 50% of Inrange's
total revenues
- ESCON/FC director switches
- ESCON second source used primarily by Hitachi,
but also a supplier to IBM and EMC.
- FC director introduced in April 2000 - $3.7M in
revenues in 2Q2000. |
