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Technology Stocks : Mylex

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To: Baker who wrote (1780)3/21/1999 11:06:00 PM
From: Dougerdad  Read Replies (1) of 1820
 
It looks like Mylex is making less money with low end RAID than with high end RAID. Their unit volumes are higher and unit cost is lower. Due to a lower gross margin, they are making less money.

The challenge Mylex has is to lower their unit costs and increase profitability. That is going to be tough. I believe that their
controllers use very expensive Intel and LSI chips, whereas Adaptec
makes their own SCSI chips and don't need an on board DSP.

Thats my 2 cents.

Dougerdad

I have been out of this stock for over a month when it started to act weird and the dumb TPC-C/D extremeRAID press releases came back.
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