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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: KJ. Moy who wrote (15755)	4/15/1998 11:35:00 AM
From: Craig Stevenson	Read Replies (1) of 29386

KJ, Ancor management seems to be in a no-win situation here. If they take back the switches, to avoid the spread of trade secrets, they will take a financial hit. Sun probably has no grounds for returning them either, since by all indications, they worked fine. I also get the impression that the reasons given by Sun for not giving the OEM contract to Ancor were not entirely satisfactory. Perhaps Ancor should just let Sun keep the switches, figuring that they were early pre-production models. Let someone else get the latest and greatest technology. Maybe the best solution is to just move on to the next potential OEM, and concentrate even more effort, now that Sun is out of the picture. It is also true that Ancor can't (and probably shouldn't) burn any bridges. I recall that the words used in the press release still left the door open to Sun business, but not as the primary supplier. Maybe that will turn into something. Craig

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