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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: buck who wrote (26162)	2/18/2000 5:33:00 PM
From: Nine_USA	Read Replies (1) \| Respond to of 29386

"We expected a very good quarter out of them (BRCD) and we were surprised," said associate analyst Glen Ingalls of SoundView in an interview. "They were far beyond what we expected in terms of revenue and operating margin. Their operating margin increased from 8.5 percent three months ago to 19 percent this last quarter. That's just unheard of." Ingalls also mentioned the company's updated Silkworm product line contributed to strong earnings due to a lower selling price and higher profit margin. ______________________________________________________ What enabled BRCD to lower its selling price and increase its operating margin?

To: buck who wrote (26162)	2/18/2000 5:43:00 PM
From: ShamukE	Read Replies (1) \| Respond to of 29386

Buck Iventory turn is the number of times that you sell your inventory in a given year. Brocade said that their turn was 41 times last quarter. This means that the inventory sat on the shelf for approx. nine days. To me this seems to indicate that they are cutting it very close. If they keep ramping up sales at the rate that they have been, will they be able to fill the orders on a timely basis. I would ask at what capacity are they producing product. If they are near or at capacity it can take a lot of resources and a lot of time to increase capacity. There have been instances where a company has over extended itself into serious difficulty. If BRCD can't fill all of their orders some one else will. However, I don't even know what a reasonable inventory turn is. If 41 is excessive, why is it so high. Buck, I worked on Wall St. when a Bear Mkt. hit. They aren't pretty. With todays excessive valuations, I shudder to think of what might be in store if one comes. in addition to the valuations, many of todays employees have never had to handle a Bear Mkt. I too was unconcerned but todays trading put the fear into me. HAGO