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Technology Stocks : McData (MCDT) -- Ignore unavailable to you. Want to Upgrade?

To: Gus who wrote (58)	9/6/2000 1:00:31 PM
From: Gus	Read Replies (1) \| Respond to of 234

Correction: I misspoke when I indicated that McDATA currently has more than 400 customers outside of EMC and IBM. The excerpt below from the prospectus sets the record straight. EMC has an installed base of more than 25,000 and not everyone will be adopting the second generation SANs right away. Even then, it is clear that McDATA is at a very early stage of a very large market. CUSTOMERS As of March 31, 2000, we had core product placements with over 400 end users purchasing directly from us and our original equipment manufacturer and reseller customers in the United States and internationally. Our three major customers in 1999, EMC, Hewlett-Packard Company and IBM, are significant providers of enterprise storage systems. We currently market our products primarily through one key original equipment manufacturer, EMC, and one key reseller, IBM. In 1999, EMC accounted for approximately 69%, Hewlett-Packard accounted for approximately 13% and IBM accounted for approximately 11% of our total revenue, respectively. The following is a list of all other end users that purchased McDATA products directly from us and our original equipment manufacturer and reseller customers based on billings by McDATA in excess of $70,000 in fiscal 1999: 21st Century Insurance Group Amdahl Corporation Citibank (South Dakota), N.A. Comparex Informationsystems GmbH Computer Sales International, Inc. Edward Jones GE Capital Information Technology Solutions, Inc. Netmarks Inc. Northpoint Communications Group, Inc. People's Bank Pfizer Inc. Williams Communications, Inc. Seventy thousand dollars is approximately the average aggregate dollar amount of billings per end user customer in 1999, after excluding billings to our three major customers. After excluding billings to our three major customers, therefore, the end users listed above all were billed by McDATA in amounts greater than our average aggregate dollar amount of billings per customer in 1999.