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

To: iceburg who wrote (77)	1/30/1998 2:57:00 PM
From: TheLineMan	Respond to of 788

I dug up a lot of articles and it appears to me that most of the oem deals they had were planning to begin shipments in EMLX's last quarter. They seem to be partnered with everone in the disk array storage field , DG, Unisys, DEC, Bull,IBM, Sequent. And they are also partnered switch with fibre channel switch manufacturers Brocade and Ancor. The only real competition appears to be HP which has contracts with Compaq for its tachyon adapters, I thought it might be possible the drop in stock price could be due to the announcement of the Compaq buyout of DEC (DEC is one of EMLXs partners). Another possibility might be relatively flat increase in fibre channel product sales - however everything seems to be gearing up in 98. One article mentioned how cost of the adapters is only half of what it was a year ago - so I wouldn't be suprized if they are selling more product. The improved margins seem to indicate that the manufacturing process is more efficent (usually happens when you you work the kinks out of a product, and manufacture in higher volume). I'll post the links to the articles when I get home. Anybody want to comment????? I would appreciate some input.