John,
I'm no accountant, but I agree with you that without any significant contracts, Ancor will be in trouble in a few quarters. I guess the point is that I, Kerry, and some others here on SI think Ancor HAS landed some significant contracts. These contracts should help fund the ongoing development of the next-generation switch, and also the advertising campaign, without tapping too deeply into the Reg D. money. Granted, we have no official word from the company, but with their new "no news until it's a done deal" policy, Ancor is the LAST place to look for word of pending deals. As long as we see evidence of significant contracts over the next several quarters, I think ANCR will be all right.
I still maintain that the next-generation switch is the key to Ancor's future. As far as I can see, it is a make or break product for them. The Class 2/3 optimization is critical to compete with the likes of Brocade, the FC/AL support is critical for companies like Seagate and Sun, and the lowered cost is critical for the entire Fibre Channel market.
Craig |
