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

To: Neil S who wrote (13291)	12/21/1997 11:07:00 PM
From: A. Henry Marzullo	Read Replies (1) \| Respond to of 29386

George, your concerns about the cost factor are right on the money. All the more reason ancor must control and cut their expenses. Large public companies do it when necessary. Small private companies do it when necessary. Small public companies like ancor should be no different. I do believe there will be growth in ancor's switch sales next year just not explosive growth as the bull's on this thread believe.( Unless 1 or 2 important OEM's pan out) I am a realist now (I was an optimist when I first bought ancor)and seeing that there is a general slowdown predicted in networking growth and probably storage as well in 98, clearly cost is even bigger factor now. I would not be concerned about ancor SG&A expenses if they had a Brocade/OEM like contract, but they don't yet, so therefore the concern. Should there be a concern that if they cut expenses too much, they might lose their technological edge? I doubt it. If this MkII switch doesn't make it in the few important OEM's ought there, then there is no point in spending even more money designing an even better switch given the long test and developement cycle with OEM's. Keep costs down ancor, lower the switch price and the contracts and revenue will come, as they have for brocade and other FC companies. Perhaps I am oversimplifying a complex situation. Any comments? And by the way Happy Holidays to everyone on this thread.