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

To: ronald rollins who wrote (27009)	5/16/2000 11:44:00 PM
From: Greg Hull	Read Replies (2) \| Respond to of 29386

Just to add a couple comments to George's and Ron's. The meeting lasted about 80 minutes, of which 15 minutes was spent explaining the Qlogic merger and 35 minutes of Q&A. The merger is a strategic move, not a financial transaction. The Ancor management team clearly thinks this is the best way to increase shareholder value over the next few years. The reaction from customers and institutional investors has been universally positive. INRANGE and Ancor will both sell the directors. INRANGE concentrates on end-user accounts, and Ancor on OEM. Ancor buys the directors from INRANGE and so the gross margins will not be as good as the switch GMs. There are indications that Brocade has moved away from the shared memory architecture they used previously. Now memory is onboard the ASIC. Supposedly Brocade will be coming out with an 8-port ASIC, using Brocade and LSI IP. This change in architecture lends itself to better scalability, i.e., larger fabrics. Rumors of a low RAS director from Brocade in the offing. If this comes to be, will reduce the price that can be charged for directors. Ancor does not expect to sell InfiniBand chips for Intel motherboards. It is possible that they could be sold to other processor/MOBO companies. Most likely case is Ancor sells an external box to connect servers to each other, and/or to storage. The storage connection could be IB or FC. The lawsuit with Hoyt Properties has been settled. Since the merger with Qlogic is strategic, they did not want collars in place that would allow others to jack stock prices around, solely in an effort to play the resulting slingshot. The stock ratio was based on expected contributions for the individual companies in 2001. Therefore we should be benefiting from the expected Sun ramp. The stock ratio would have been much lower without the expectation of a significant ramp. Cal Nelson will be the General Manager of the Minnesota operations. They were the most vocal I have ever heard them be about displacing Brocade as the #1 FC switch company. They think they had a good shot to do this without Qlogic, but expect it to happen much sooner with Qlogic. They said there are several opportunities in the very near future, and believe their chances of landing the business are much greater with Qlogic. I'll post more comments later if I think of anything else. Greg