Craig Stevenson, great job on the conference call -- just listened to the replay. In my opinion, what I heard was a management team struggling with the recognition that they did not have a clue about how to deal with an emerging market in storage, and a management team that at least has made a decision that its' limited resources cannot be deployed in both the LAN environment and the SAN environment. That is the good news in one sense (more on this below); however, if I was on the jury, I detected hints at problems with the MKII at the early stages, and that the "real MKII" was not out there in the real world until some point after it was announced, and that the initial announcement was one concerning a working prototype, and not the product which they have out there now. While the numbers a bleak, and the near-term future poor, at least this management team has not booked evaluation product as revenue, and that there will be no surprises in that regard.
That being said, it startles me to see a charge to the PL of $4 million of "old product". If there really was any type or kind of LAN market out there for that product, it could be sold -- even at a deep discount; instead it is being written off, which leads me to conclude that there is virtually no demand on the LAN side for fibre channel, or that Ancor realized that it won't be around as a company to see that demand if they continue to pursue sales in that area. What, exactly, is behind that write off?
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