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

To: KJ. Moy who wrote (28779)	7/24/2001 11:56:36 PM
From: Douglas Nordgren	Read Replies (2) \| Respond to of 29386

Thanks KJ for the important points. Some filler. The 27% sequential decline in SCSI revenue came about from customer inventory accumulation. Though they wouldn't say it outright, it looks like the bulk of the shortfall came from Fujitsu. They did say it may take 2 to possibly 3 quarters for their customers to bleed off inventory before linearity returns to SCSI sales. They view this slump as a symptom of the macro economic environment, not evidence that Fibre Channel is supplanting SCSI in the storage peripheral market. There is no volume shipping yet on Sbus HBA sales to Sun. They supply the PCI HBAs to Sun. They see no pricing pressure in HBAs, they already cost less than competitors' HBAs. Fibre Channel sales were up 10% across the product line, including switches. That means that FC switch sales should be right above $10 million now, close to McData's switch sales. Inrange and Sun account for the majority of the switch sales. EMC sales were up sequentially. 2Gig switch currently sampling with many OEMs, don't expect any design wins until the end of the year and next year. 2Gig device controllers the final element needing qualifications to complete the end-to-end 2Gig product line. That's why early 2Gig deployments are running at 1Gig. Though iSCSI and IB products will begin to be deployed early 2002, they don't count on significant ramp and revs to start occuring until late 2002 or early 2003. Overall, the storage networking market, while temporarily constrained, remains strong enough to support a sequential projected growth rate of 10% for their Fibre Channel products.