The New QLogic (ANCR) Message Board

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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 (18225)	9/25/1998 11:38:00 AM
From: Kerry Lee	Read Replies (1) of 29386

Craig, I don't think total shares outstanding will be as bad as 25 million despite what the S-3 says, because the 25 million number assumes a conversion price around $1. Also, the Boeing AWACS will not be 100% gross margin since I think they still need to buy a few parts (eg. optics) and they will probably make some kind of accounting adjustments to avoid distorting their margins..I have heard that Boeing AWACS should be in excess of 50% gross margin. FWIW, IF Ancor decides to spread the $9 million licensing/royalty over 3 quarters, then Q3 revenues will be $3 million worst case and Q4 will be $5 million worst case( $3 million INRANGE + $2 million AWACS )..The flipside is if they decide to recognize $7-9 million all in the current quarter...then they would have to actually report Q3 eps on a fully diluted basis <g>. Regarding the INRANGE deal, my understanding is that Ancor already received their first installment of the INRANGE payment with the second installment payment due in mid-December and the third in mid-March.

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