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Technology Stocks : Brocade Communications Systems,Inc. (Nasdaq-BRCD) -- Ignore unavailable to you. Want to Upgrade?

To: Thai Chung who wrote (1486)	12/11/2003 8:43:15 AM
From: Thai Chung	Respond to of 1583

Merrill Lynch upgraded its rating on Brocade Communications Systems (BRCD: news, chart, profile) to neutral from sell, citing valuation as well as "the potential for operating margin expansion next year, and Cisco not being as successful so far as we had thought for Brocade." Shares were marked up 15 cents at $5.65. marketwatch.com

To: Thai Chung who wrote (1486)	12/11/2003 11:50:04 AM
From: Capt	Respond to of 1583

Dow Jones Business News Merrill Sees Brocade Operating Margins Expanding In 2004 Thursday December 11, 10:19 am ET By Adam L. Freeman, Of DOW JONES NEWSWIRES NEW YORK (Dow Jones)--Brocade Communications Systems Inc. (NasdaqNM:BRCD - News) will likely be able to expand its operating margins, in part because of lower cost for its new microprocessor chip known as an application specific integrated circuit chip, or ASIC, according to Merrill Lynch. The new chip will support more functions than some of its competition and be integrated with other products, "allowing for more cost savings," said analyst Shelby Seyrafi, who Thursday upgraded Brocade stock to neutral from sell. Furthermore, the company should launch new products next year to allow it to lower costs and "better compete in the marketplace," the analyst said in a research report issued Thursday. The analyst also mentioned an expected deal for switches with PC giant Dell Inc. (NasdaqNM:DELL - News) . "We wonder if QLogic Corp. (NasdaqNM:QLGC - News) will also eventually participate in such a Dell solution since QLogic has a strong relationship with Dell, and QLogic will likely introduce a very price competitive SANBox 5200 switch in the February 2004 time frame," Seyrafi wrote. The analyst couldn't be immediately contacted for comment on disclosure of possible conflicts of interest. However, in a statement on the report, Merrill says it should be assumed it is seeking or will seek a business relationship with the companies mentioned in the report. Merrill remains concerned "primarily about pricing due to Cisco Systems Inc. (NasdaqNM:CSCO - News)'s (CSCO) attempts to jump start its (storage area network, or SAN) business with lower prices, McData Corp. (NasdaqNM:MCDTA - News)'s intense competition with Brocade in this market, and our belief that (original-equipment manufacturing companies) will increasingly attempt to extract lower switch prices as they play with three SAN switch vendors off each other." -By Adam L. Freeman, Dow Jones Newswires; 201-938-5023; adam.freeman@dowjones.com