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

To: Lizzie Tudor who wrote (1542)	4/30/2004 1:18:08 PM
From: E_K_S	Read Replies (1) \| Respond to of 1583

Lizzie - I am not sure what CNBC is measuring regarding the types and varieties of semi's (i.e. PC components) for them to say that the semi cycle has peaked, but for both LSI and Brocade I believe there is a different emerging cycle. I believe the previous statistics that have been used do not accurately reflect this new shift in the types of components (and software) now being used for the delivery and storage of electronic media. HDTV and home based networks using broadband linked enterprise services is an area I see emerging. Brocade would benefit from on-demand user storage services (like customer downloading "video" media-Netflix will be launching a broadband version of their DVD service or the transition from paper statements to electronic deliver with on-demand end user retrieval using network broadband applications). My point is the previous cycles reflected the components and demand for individual PC devises (w/ some enterprises utilizing limited LAN networks). The next wave will be composed of much more multi media content (especially video) and the "real time" delivery of this media through broadband and wireless WAN seamless converging networks (including VOIP). LSI manufactures the HDTV and other chip components that converts this digital media so many of these new devises can play, store and display this active content. Brocade provides the "virtual" storage switches that link and allows the real time retrieval of this media on-demand from the end user anywhere any time. Fortune 500 companies are only now figuring out how to use this technology to better service their customers (w/ new products and services). The first transition we see now are companies implementing in house applications to help reduce ever increasing operating costs (like sending paper in the U.S. mail system). As the price of storage falls and end user broadband services become available many more of these new electronic delivery features will be offered. The end user is also slow to adopt but when the application is not available they will just stay with the old style systems. Therefore, I like both of these companies based on this theme of the exponential growth in the delivery of electronic media. Eventually profits will follow as the services and feature grow. However, at current price levels it appears the investors are a bit skeptical weather this transition will ever occur. EKS