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Technology Stocks : Brocade Communications Systems,Inc. (Nasdaq-BRCD) -- Ignore unavailable to you. Want to Upgrade?

To: Mohan Marette who wrote (449)	2/18/2000 9:08:00 PM
From: Mohan Marette	Read Replies (1) \| Respond to of 1583

"Strong Buy" SunTrust-Takeover Speculation?-Rev comparison Brocade Communications Rises on Earnings, Stock Split (Correct) 2/18/00 2:33:00 PM Source: Bloomberg News Brocade and other makers of equipment for so-called storage area networks, or SANs, compete in a niche that big computer- network gear makers such as Cisco Systems Inc. aren't in. Companies are buying Brocade equipment to offer faster access to large databases from the Internet. Boeing Co., Cisco and NASA, among others, use Brocade equipment to store and back up data.... The company has almost 10 times the revenue of its nearest rival, Ancor Communications Inc., whose shares have fallen 23 percent so far this year. Ancor's shares are still up about eightfold in the past 12 months. .............. Space Saver Brocade, Ancor and other companies such as Crossroads Systems Inc. and Gadzoox Networks Inc. make products based on a technology standard called fibre channel, which can link powerful computer servers and massive storage systems that are up to distances of about six miles apart. Companies and organizations are setting up SANs to divert traffic from and save space on their main computer networks, which usually transmit data using the slower Ethernet standard. 'That is becoming more and more of a requirement as the amount of data out there just becomes phenomenal,' said Mark Kelleher, an analyst at SunTrust Equitable Securities in Boston, who rates Brocade a 'strong buy.' Sales of fibre-channel switching products are forecast to rise 10-fold to $2 billion in 2003, said James Opfer, an analyst at Dataquest. Kelleher said he didn't think takeover speculation has played a part in Brocade's share rise, though 'there's always that in the background.' 'Clearly, if one of the switch vendors wants to dominate the storage switching market,' the company would buy Brocade, Kelleher said. Cisco, 3Com Corp. and Nortel Networks Corp. are the biggest makers of network switches and routers. Brocade made sales agreements for its products in the quarter ended Jan. 29 with Hewlett-Packard Co. and Amdahl Corp. They add to agreements with Compaq Computer Corp., Dell Computer Corp. and International Business Machines Corp., among others. cnetinvestor.com