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To: Kerry Lee who wrote (11956)	10/29/1997 10:14:00 PM
From: Ken Richard	Read Replies (2) \| Respond to of 29386

<<<At the very least, with a shareholder lawsuit hanging over the Company, I would expect them to err on the conservative side when describing their future prospects. Just my take. >>> Nothing that they would say tommorrow would have any impact on any pending lawsuit. The "claim", and I use the term loosely, is to redress actions taken over a year ago. I would hope that there would be no chilling effect on their speech, or the way they will conduct business. In my view, visibility is critical at this juncture, and I think we all hope that Ken et al takes an aggressive posture with all aspects of this business from this point on.

To: Kerry Lee who wrote (11956)	10/30/1997 8:25:00 AM
From: Craig Stevenson	Read Replies (3) \| Respond to of 29386

Kerry, Well, it looks like you were right about the write-offs. Any idea which adapters they are writing off? It is a record revenue number, but they missed the Kinnard estimate by a little bit. I'm surprised by the extent of the loss, even after backing out the special charges. (-.23 +.08 = -.15) That's an improvement, but not much. What are your thoughts on the $250,000 severance package? Is that all of it, or will there be more? I noticed that Ken said, "...the company delivered an order of GigWorks Fibre Channel switches to a major oil company for use in geo-seismic modeling application." I hope they expand on this during the conference call. It would be interesting to know who this was, and what kind of potential was there. We have heard oil-patch rumblings here for quite a while, but no names have been attached. Any thoughts on what Ken meant when he said, "...the timing of orders and shipments will result in revenues varying from quarter to quarter."? Could this mean that there are orders there that haven't shipped yet? Craig

To: Kerry Lee who wrote (11956)	10/30/1997 8:57:00 AM
From: John Curtis	Read Replies (1) \| Respond to of 29386

Kerry: You hit it on the head, the number is $3,424,000!! Plus they've announced certain write-off's which make their net loss .23 a share. John~

To: Kerry Lee who wrote (11956)	10/30/1997 9:10:00 AM
From: iceburg	Read Replies (2) \| Respond to of 29386

On the other hand, this is the very first quarter for both the new CEO and new CFO and one could argue that neither had any impact on the quarter ( credit or blame ). Therefore, IF there is any opportunity toi take write-offs ( such as for inventory/returns due to product transition ), the time for them to announce it would be tomorrow. In other words,they have a once in a career opportunity to blame their predecessors and they start off with a clean slate. Nice call as always Kerry. I hope your Quantum call was correct as well... (equity investment)