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Strategies & Market Trends : Steve's Channelling Thread -- Ignore unavailable to you. Want to Upgrade?

To: Zeev Hed who wrote (10457)	1/24/2001 7:02:46 AM
From: orkrious	Read Replies (2) \| Respond to of 30051

Zeev, I haven't looked at QLGC's numbers to confirm, but here's more from Herb: thestreet.com subscribers only QLogical: After Emulex (EMLX:Nasdaq - news - boards) reported better-than-expected earnings last week, QLogic's (QLGC:Nasdaq - news - boards) stock traded up. If one's doing well, then the other must be doing well, too, right? Not necessarily. Emulex earnings were up sharply, but its receivables and inventories weren't out of line with its sales. By contrast, QLogic's earnings beat estimates, but here's the rub: Its sales were up around 12%, but its receivables were up 50% and inventories were up 47% over last quarter. Looking at it another way, sales from last quarter were up around $10 million and receivables were up around $20 million. All of which suggests to short-sellers that some customer or customers agreed to load themselves to the gills with QLogic product. Only those tricks don't work as well as they used to; QLogic's stock, after the close, fell on that supposedly great quarter. Jay