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To: windmast who wrote (29042)	9/26/2002 1:23:43 PM
From: Benoit Rousseau	Respond to of 29386

Probably related to the BRCD news: 11:59 ET Brocade plunges on lack of guidance, false Solly rumor (BRCD) 8.89 -1.48: Stock has tanked in the last 20 min on heavy volume following their presentation at the Banc of America investor conference; while we're told the presentation was generally positive, we are also hearing the negative reaction was due to the fact that the co declined to give guidance, as well as a false rumor that Salomon Smith Barney was making negative comments on the co.

To: windmast who wrote (29042)	9/26/2002 5:03:53 PM
From: w2j2	Read Replies (1) \| Respond to of 29386

SAN FRANCISCO, Sept 26 (Reuters) - Shares of data storage networking stocks dropped on Thursday, led by Brocade Communications Systems Inc.(NASDAQ:BRCD), which declined to update guidance at an investment conference. Shares of Brocade dropped nearly 20 percent and storage heavyweight EMC Corp. (NYSE:EMC) fell almost 13 percent. Brocade Chief Financial Officer Tony Canova declined at a conference hosted by Banc of America Securities to update guidance for the quarter, which closes at the end of October, saying it was company policy not to provide such updates. "People apparently are reading into this that they are going to pre-announce," said Gary Helmig, a storage analyst at SoundView Technology. Brocade had commented at such conferences in the past but apparently changed its policy a couple of months ago, Helmig said. The association with storage networking was hurting EMC, which makes storage systems that work with Brocade's products that direct storage network traffic, he added. "The market is worried about anything that's going to have a hiccup, because it can get so trashed so quickly." Canova said customers were focused on driving down costs and were consolidating data storage and computer servers. "We've seen the end-customer dynamics remain solid," he said, which Helmig interpreted positively. He also said that he had found no indication EMC's business was unexpectedly poor. Thomas Weisel Partners analyst Kevin Hunt trimmed EMC revenue estimates for its fiscal year ending in December to $5.65 billion from $5.7 billion, with a loss of 4 cents per share and said his analysis put fair value of the stock around $6 per share. However, he kept the outlook for the current quarter steady. "IT (information technology) spending remains slow in general, and large high-end projects continue to be pushed out," Hunt wrote in a note, saying spending had shown no improvement or deterioration. Brocade's products manage the flow of data on storage networks, pools of machines that store information and that can supply it to many computers. Networking giant Cisco Systems Inc.(NASDAQ:CSCO) is moving into the storage arena. Canova said Brocade had unique technology and a dominant position in storage networking. Shares of Brocade fell $2.042 to $8.328 on the Nasdaq and EMC lost 76 cents to close at $5.25 on the New York Stock Exchange. Copyright 2002, Reuters News Service