Larry, here's the link between EMLX and VRTS
<<Storage area networking management competitors include Compaq Computer, Computer Associates, EMC, IBM and network switch vendors. >>
OK, it goes like this: if sales are weak in the SAN management area, then SAN sales in general are down, and the SAN players like BRCD, QLGC, EMLX, MCDT, etc. will be down, too on "depressed sales sympathy."
Now, VRTS actually said that storage, disaster recovery, and services were the areas that kept it from being as hard hit as others due to the IT slowdown. So it's very possible that there is no relationship at all, if that trend continues. However, if VRTS is forecasting a slowdown in the storage area for next Q, then there is the possibility that Emulex and the others are rightfully feeling a stock price downdraft due to the VRTS call.
Hope that helps.
the freep |
