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Technology Stocks : Emulex, What Prospects? -- Ignore unavailable to you. Want to Upgrade?

To: Thomas Scharf who wrote (73)	1/28/1998 9:21:00 PM
From: TheLineMan	Read Replies (1) \| Respond to of 788

I've been looking at this company and trying to find a little more about them. and why it's down since earnings. My questions 1) They met earnings estimates and seem to be increasing margins by replacing revenues from old products with the the new fibre channel products. This seems to have decreased their total revenues but not by much and the fibre channel products are higher margin. 2) Forward looking P.E. is about 7 in an industry that is expected to be high growth. 3) Data General said in their last quarterly news report that: "As we and our customers make the transition from traditional storage technology to advanced fibre-channel technology, it is impacting short-term CLARiiON revenues. While the second fiscal quarter also will be challenging, the outlook for CLARiiON is positive" biz.yahoo.com biz.yahoo.com I believe Emulex supplies Data General with its Fibre Channel stuff: emulex.com. In addition other OEM are gearing up to use their technology. With all this going on isn't EMLX poised to explode. It looks like a great investment or am I just missing the picture - the price is dropping? Is there something I should be aware of before I commit funds to this one??? Comments???

To: Thomas Scharf who wrote (73)	1/30/1998 11:59:00 PM
From: TheLineMan	Respond to of 788

Thomas I was wondering who your friend works for. Just a few notes on Data General, I'd be interested on your comments to 3) below. It looks like its taking a little longer than expected to hook the masses on fibre channel- but this is like a ticking time bomb. 1) Press release from Data-General July 15th 97 announcing deal - "CLARiiON, the world's leading supplier of open RAID-based disk array" dg.com 2)Press release from Data-General - Dec 9th 1997 Bull is big in Europe dg.com 3)Press release from Data-General - Jan 1st 1998 looks like DG are pushing the move to fibre channel, but by providing SCSI to fibre channel options: dg.com 4) Press Release from data General -looks like a few hickups but note what they say: "As we and our customers make the transition from traditional storage technology to advanced fibre-channel technology, it is impacting short-term CLARiiON revenues. While the second fiscal quarter also will be challenging, the outlook for CLARiiON is positive." Looks at the Clarion performance using fibre channel - excellent. dg.com