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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: eric sahlin who wrote (18166)	9/24/1998 7:51:00 PM
From: Craig Stevenson	Read Replies (1) of 29386

Eric, It appears as if the $9 Million is for both technology licensing and royalties. Evidently, INRANGE plans to add Fibre Channel switch technology to their existing products. They have apparently licensed Ancor's technology (I'm assuming ASICs and other switch components such as firmware, software, etc.) to develop these products. They have also evidently agreed to pay some sort of royalties per product sold. (This could be based on ports too, I suppose.) Interestingly, these royalties are prepaid, although Ancor could lose $2 Million if they don't deliver on certain items. Although I'm a little cautious because of the caveats at the end of the press release, it looks as if this is the exact sort of non-dilutive financing that Ancor needed. ZERO dilution, and a chance to compete in the SAN market in 1999! Well done, Ancor! Craig

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