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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: Earl Jones who wrote (13152)	12/16/1997 8:32:00 AM
From: Craig Stevenson	Respond to of 29386

Earl, Thanks for the Computer World article. I don't get that magazine, so I would have never seen it. Some people here have downplayed this installation, but this is an important one from a number of standpoints. Fibre Channel was chosen to replace ATM and was chosen over Gigabit Ethernet. That, in and of itself is significant. The other interesting thing to me is that it replaced 155 Meg ATM, not 25 Meg ATM as I had originally thought. In my opinion, the biggest issue is that for the first time, Ancor has penetrated a target market that they have TALKED about for a long time. The Amoco installation, combined with the GeoQuest partnership should mean increasing visibility (and sales) within the geoseismic area. The other thing to remember is that this is basically a LAN type installation. Revenue from the high-growth STORAGE area has yet to hit Ancor's balance sheet. That is something that us long-termers dare not forget. In my opinion, STORAGE revenue will dwarf LAN revenue by the end of 1998. Part of the basis for that opinion is the sheer size of some of these OEMs. There has been much discussion about SUNW,with revenues of $8.6 Billion. In contrast, SQNT had revenues of $595 Million, and look what they did for Brocade. I have also found a potential OEM that is in the $2 Billion range, one in the $6 Billion range, and one that is almost $12 Billion. I found another potential OEM that is already advertising a Fibre Channel switch! I'm not going to reveal the name of that OEM for competitive reasons, and I'd advise others to do the same. Ancor doesn't have to sign too many OEMs that size to be successful. Craig