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

To: Kerry Lee who wrote (26803)	5/9/2000 2:41:00 AM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

qlogic.com infinibandta.org - cursery review of QLGC last quarter revealed QLGC revenues grew by +73% to a record $52.3 million vs Q3 YA.Net income grew +118% to $15.6 million/$0.40 eps ( fully diluted and pre-split ) excerpt from Q3 press release: <<For the first nine months of fiscal 2000, ended December 26, 1999, revenues expanded 74% to $143.0 million, compared to the $82.1 million reported for the same period a year ago. Net income for the first nine months of fiscal 2000 rose 147% to $40.4 million, or $1.05 per share on a diluted basis, compared to the $17.2 million, or $0.46 per share on a diluted basis, recorded for the same period a year ago. Demand for Fibre Channel solutions continued to grow in the third quarter, as sales increased 201% from a year ago to $16.6 million, or 32% of total revenue. "Our Fibre Channel sequential growth rate has accelerated over the past two quarters, as server and storage OEMs have increasingly deployed QLogic chips and host bus adapters in Fibre Channel-based system solutions," said H.K. Desai, the Company's Chairman, CEO and President. Fibre Channel sequential growth accelerated to 36% in the third quarter. "Although our Fibre Channel business has become the driving force behind QLogic's growth, our SCSI business continued to grow at higher rates than achieved last year," noted Desai. QLogic's SCSI revenues grew 38% from a year ago and continued to dominate the Company's revenue base at 65% of total third quarter revenues. Lastly, QLogic's IDE royalty business, which commenced in the first quarter, amounted to $1.5 million in the third quarter and provided an additional source of revenue growth over the year ago period. >> From a tech neophyte's perspective , it appears to me that QLGC not only has demonstrated revenue/earnings growth and strong OEMs/market share, but long term it has the best of 3 worlds. In other words, QLGC/ANCR combo has been and will be a MAJOR PLAYER in THE 3 important I/O technologies: SCSI ( 65% of current QLGC revenues ), Fibre Channel ( combined QLGC/ANCR will do at least $30 million in FC sales Jan-Mar 2000 period ) and INFINIBAND. Due to the current FUD surrounding FC/SAN technology versus GE/IP/NAS, QLGC has great short and long term potential while not having their eggs all in 1 basket/technology. ps - Ken H did a great job in CNBC interview and was even friendly with Maria despite the fact that she appeared to be a biased mouthpiece for the BRCD/MSDW camp.

To: Kerry Lee who wrote (26803)	5/9/2000 8:57:00 AM
From: KJ. Moy	Read Replies (1) \| Respond to of 29386

<<Gregory Reyes Jr., Brocade president and chief executive, said it's unlikely that the company's relationship with QLogic will be expanded. ``A move like this changes the nature of relationships,'' he said. ``It's like telling your wife that you're going to date other people. Now, QLogic is a direct competitor with Brocade.'' >> I sense bitterness from his statement. I would be worried if he said something like "I'm happy for both QLGC and ANCR, it is a great combination, it is going to be good for the FC industry. We welcome the challenge. And, I don't see any dramatic immediate change in our relationship."