Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: w2j2 who wrote (4511)	4/6/2002 9:17:24 AM
From: jad	Read Replies (1) \| Respond to of 4808

Storage wars from Barrons The speeches were subdued at last week's Storage Networking World conference, in Palm Desert, Calif. Some of those speeches, in fact, were preannouncements of earnings disappointments, like that of McData. For the second time this quarter, the Broomfield, Colo., firm warned of a March quarter shortfall. Weak spending at data centers has pinched orders for McData's switches, which connect arrays of disk drives. But McData's also feeling the effects of faster products introduced by rival Brocade. Brocade, of San Jose, Calif., has priced its SilkWorm 12000 switch at a bare premium to products like McData's, even though the Brocade switch runs at twice the speed. On Friday, Piper Jaffray analyst Ashok Kumar reported evidence of the aggressiveness of storage network rivalries. A few large data centers tell Kumar that their Brocade SilkWorm 12000s arrived with warnings from Brocade against using the gadgets until Brocade announces the SilkWorm's "general availability." Kumar wonders if Brocade counted those shipments as revenue, and if not, where they will appear on Brocade's balance sheet. I sought Brocade's comments, with no luck by deadline. Analyst Kumar told me he'll get the truth out of Brocade right around the time there's peace in the Middle East.