Michael,
Did you ever get back into ANCR? Look at it now! FC is coming of age and SUNW is back in the picture. Just in case you have not seen it, here's the press release that brought ANCR into a new light.
Sun Micro to Use Ancor Switches, May Acquire 5% Stake
Minneapolis, June 3 (Bloomberg) -- Ancor Communications Inc.
said Sun Microsystems Inc., the No. 4 maker of server computers,
may acquire as much as a 5 percent stake in Ancor for up to $11
million and Ancor will supply Sun Microsystems with computer-
network switches, sending Ancor shares up.
Ancor shares rose 3 13/16, or 37 percent, to 14 1/16.
Minneapolis-based Ancor, with 1998 revenue of $4.39 million,
makes switches that link servers and storage devices in storage-
area networks. Sun Microsystems will use Ancor's Fibre Channel
8-port switches in its StorEdge product under the agreement.
Ancor said it issued Sun a warrant to purchase as many as
1.5 million Ancor shares at $7.30 a share, a 29 percent discount
to Ancor's closing price Wednesday. The warrant can be vested at
a rate of one Ancor share for each $67 in revenue from Sun, Ancor
said.
''Our customers' storage requirements are doubling every nine
to 12 months,'' Kathleen Holmgren, vice president of business
operations for Sun Network Storage, said in a statement.
Sun's investment could represent as much as 6 percent of
Ancor's common stock and 5 percent of its fully diluted shares,
said Steven Snyder, Ancor chief financial officer. The agreement
will make Sun Ancor's largest customer, he said.
Ancor's shares plunged in March of last year after it said
Sun decided not to use Ancor's switches in its StorEdge products.
Snyder said Sun agreed to use different switches than the company
was considering last year.
0- (STR) Jun/03/1999 15:50
EOS (STR) Jun/03/99 15:50 **
Jun/03/1999 16:09
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