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

To: J Fieb who wrote (4330)	1/23/2002 8:17:57 PM
From: Gus	Respond to of 4808

INRG already preannounced. MCDTA will probably post good sales growth and improving margins since IBM accounts for around 16% of MCDTA revenues. There's also a good chance that MCDTA will post $7M-$10M in software and services revenues, or over 10% of sales, tomorrow as previously deferred software revenues become recognizable. The question is will McDATA follow BRCD and EMLX in issuing convertibles? There seems to be a ready market for it now that the storage networking industry has clearly demonstrated that it is on the cusp of mainstream adoption over the next 3 years. With its dominant position in first generation (ESCON/FICON) and second generation (FC) storage networks, MCDTA would appear to be a layup. With the IPO market and M&A market still on the doldrums, it's always a good idea to throw some fee business to investment bankers who may not be all that accustomed to slummin' it especially since the IPO pipeline looks kinda' thin until later this year when the baby Tycos, Seagate and SAS Institute IPOs hit the market. All these companies already have more than $1B in sales and would represent the first opportunity for Wall Street to make a clean break from the pre-revenue IPO excesses of the past few years. Infiniband has fallen back to the 2005-2010 time period. iSCSI is not a realistic near-term threat considering that the average price per 1Gbps port is still $1,000 per port and the average price per 10Gbps port is still $38,000 per port, and most companies still have to make the transition from 100Mbps to 1Gbps. FC is already at 2Gbps and has a clear path to 10Gbps.