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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Pigboy who wrote (2626)	1/23/2001 1:46:02 PM
From: Douglas Nordgren	Read Replies (1) \| Respond to of 4808

Hi Robert, the BRCM acquisition of ServerWorks poses no direct threat QLogic or any other FC mfr. An article from Light Reading should clarify the acquisition - lightreading.com IRVINE and SANTA CLARA, Calif. -- Broadcom Corporation (Nasdaq: BRCM - message board), the leading provider of integrated circuits enabling broadband communications, today announced that it has signed a definitive agreement to acquire ServerWorks Corp., the world's leading independent supplier of high-performance system input/output (I/O) integrated circuits for servers. ServerWorks' SystemI/OT silicon solutions act as the essential conduits for delivering high-bandwidth data in and out of servers, and coordinating all I/O transactions within the server platform including between external I/O, the main system memory and the CPUs. [Sound familia? Think InfiniBand] The merger transaction has a value of about $957 million. The acquisition is expected to be accretive to Broadcom's diluted earnings per share to the extent of approximately $.02 to $.03 per share per quarter throughout 2001 on a pro forma reporting basis. "The server's job is to provide compute power and storage to many users simultaneously, so the I/O and networking technology are essential elements to assure optimal system performance," said Raju Vegesna, President and CEO of ServerWorks. "The combination of Broadcom and ServerWorks provides a unique opportunity to innovate, integrate, and enable users to unlock the full potential of Intel's high performance processor family." See the IDC chart just posted re switch and director sales forecasts and then imagine the BRCD-MCDT-INRG scenario you asked about. FWIW, I understand that products based on Brocade's next gen ASIC have been pushed back to the end of 2001 (from mid-2001). That's cutting things pretty close in this rapidly evolving SAN market. Douglas