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Technology Stocks : EMC How high can it go? -- Ignore unavailable to you. Want to Upgrade?

To: Gus who wrote (12150)	2/12/2001 6:43:14 PM
From: GuinnessGuy	Read Replies (1) \| Respond to of 17183

Gus, It would appear that EMC was, in part, the reason for EMLX's warning: ""We probably contributed a little bit to that problem," said Mike Ruettgers, chairman of data-storage giant EMC (EMC:NYSE - news), which buys its fiber-channel products from Emulex. Ruettgers explained that additional Emulex systems bought by EMC last year had given it about six to eight weeks of Emulex inventory." thestreet.com Now, assuming that EMC's sales didn't slow, how do you think the inventory problem developed? I have two theories. The first is that there were fears of a parts shortage last year which caused over ordering. Qlogic as much as admitted to having shortages of both flash memory and bare boards so that doesn't seem out of the question that EMC caught wind of the possibility. The second theory revolves around the 'first time' mysterious $1 million plus order that Qlogic received from EMC. Could it be that EMC is using Qlogic switches(and thus it's HBA's), and it scaling back on EMLX HBA purchases? Or would they just use Qlogic switches with EMLX HBA's(doubtful, eh?). I do remember in a previous post of yours on this very subject, you seemed to think that this $1 million order could grow quickly. And maybe it has, to EMLX detriment. What's your thinking? Craig