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

To: ronald rollins who wrote (13783)	1/22/1998 12:18:00 AM
From: Kerry Lee	Respond to of 29386

Great model/format. I offer alternative scenerios ( we're ALL guessing anyways ) for market and implied sales numbers: FC Peripherals Market ( Guesstimate ): $ Million 1997 1998 1999 2000 Switches 30 70 200 500 Adapters/Hubs 50 130 300 500 Total: 80 200 500 1000 ANCR Low Case SOM% (Switches) 20 20 20 20 $M Revenues 6 14 40 100 ANCR Med Case SOM% (Switches) 20 35 35 35 $M Revenues 6 25 70 175 ANCR High Case SOM% (Switches) 20 50 50 50 $M Revenues 6 35 100 250 I don't have time right now to review in detail the margin/SG&A/R&D assumptions or your shares outstanding conclusions.

To: ronald rollins who wrote (13783)	1/22/1998 7:29:00 AM
From: Gyan Brard	Respond to of 29386

Interesting, and optimistic, analysis. I withdraw my comments about the negative impact of financing by dilution. Thanks for the lesson.

To: ronald rollins who wrote (13783)	1/22/1998 8:39:00 AM
From: Craig Stevenson	Respond to of 29386

Ronald, Excellent analysis. Although some may differ with some of the numbers, the points you raise are exactly why some of us are still long ANCR. The POTENTIAL revenue growth, compared to the current stock price makes ANCR an interesting investment. Speculative, but interesting. Your point about dilution is also well taken. I don't like dilution any more than anyone else, but I look at it as an investment in Ancor's future. The last Reg-D basically got us the MKII. We won't know for sure until sales start to ramp, but I think that will turn out to be a good investment in the long term, since the MKII was critical to embracing the storage market. Craig

To: ronald rollins who wrote (13783)	1/23/1998 12:16:00 AM
From: Kerry Lee	Read Replies (1) \| Respond to of 29386

Ron, regarding your friend's model, I received some updated "ballpark" numbers today on the number of current "fully diluted" common shares outstanding for ANCR which includes unconverted Reg D, options and warrants. All companies began to report EPS on a fully diluted basis starting this earnings season when the new FASB disclosure rules kicked in. The rough number for ANCR is 14.4 million shares fully diluted ( subject to final audit ). PS - the Reg D conversion now stands at approx 49% converted.