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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

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Aug 24 5:00 PM EST

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To: Craig Stevenson who wrote (14666)	2/24/1998 12:39:00 PM
From: KJ. Moy	Read Replies (1) of 29386

Craig, <<<Have you heard how much Vixel paid for Arcxel? I was hoping to see that information in the press release, but it wasn't there. That type of information would give us a MUCH better handle on what Ancor would be worth in a takeover situation.>>> I was wondering about the same thing. Vixel couldn't have paid too much for Arcxel. For a startup company like Vixel, they couldn't have paid, say $50 Mil , for Arcxel. What does that said about Arcxel? They probably doesn't think they can survive on their own. The one stop shop image is nice. Smart OEMs would still demand 'price' and 'performance'. Hub will continue to be hub and switch will continue to be switch. Even if they can combine the two into a single unit, the functionality and foot print will not change. Ancor still need to align themselves with a hub vendor though. KJ

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