Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Bret Masterson who wrote (13660)	1/14/1998 1:52:00 PM
From: Tom Duxbury	Read Replies (2) \| Respond to of 29386

I would like to point out a few things about ANCR 1. FC is real and it will happen in 98. If you do not believe this, then skip the rest of this post and short as much stock as you can get your hands on. 2. The only bad thing that anyone can accuse ANCR of doing is being to early to the FC party and maybe a little late to the Class 2, 3 party. This is hindsight thinking though. Maybe ANCR should still be a private company. Maybe the MKII should have been developed earlier (This would have happened if ANCR would not have run into integration problems on Sequent and did not have to devote their engineers to try to fix the Class 1 problem. I am not going to point fingers at whose problem it was. This is in the past as far as I am concerned). Would any of you have done it differently? 3. Speaking of Revenues and customers. Can anyone name any end user customers of Brocade? Has anyone ever seen a Brocade switch or heard a customer comment on the Brocade switch? At the last FCA meeting, people were talking about FC exposure and the best way to achieve it. One hub maker said that end user evaluations and comments were needed, but the only company with any real customers was "Ancor". Brocade was sitting right there and they did not make a peep. I am not trying to bad mouth Brocade with this information, I am trying to point out that there has been no significant Class 2 and 3 FC customers as of yet. This will change, and is exactly what Ken pointed out in the last conference call. So people who make comments like "They have had their MK II out for 4 months now and have not made any sales" are ignorant in my opinion. 4. Financing. It is no secret that it would be easier to manage and raise funds if ANCR were a private company. Maybe that is why Brocades valuation is twice what ANCRs is and they are still private. It will probably be over 5 times ANCRs when they go public. The VCs know they can get 3-5 times their money in an IPO and IPOs are what draws the money in. This is not to say that ANCR is having a hard time raising money. They will get their money. Some people will see dilution, some will see a great cash rich balance sheet (half empty, half full). 5. Storage and OEMs are what will drive the FC business in the years to come. The value of these contracts will be huge. ANCR and Brocade are battling it out right now on these potential contracts. ANCR will win some and lose some. More OEMs are coming to the table every day and the potential of FC in the networking side will only be gravy if it takes off. If you have not noticed, ANCRs revenues on the networking side have been growing over the past several years and will continue to grow. Storage is a brand new market that has just emerged over the last year and will grow into the billions in the year(s) to come. Take a look a the whole picture and compare it to where we were last year at this time. Tom