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

To: TheLineMan who wrote (93)	1/31/1998 3:51:00 AM
From: Douglas Nordgren	Read Replies (2) \| Respond to of 788

Smaller margins on host adapters, no matter how many you sell. EMLX' next market to penetrate is higher-margin hubs, no small feat. They don't expect hub sales to significantly contribute to revenues until late '98. Could be one reason why the street was rude on Wednesday? Regards, Douglas

To: TheLineMan who wrote (93)	1/31/1998 11:02:00 AM
From: George Dawson	Read Replies (2) \| Respond to of 788

Valentine, I think you have to be clear on a few things when looking at releases and PR announcements: 1. The term partner or channel partner does not necessarily mean there is a firm financial deal. You can often look through old press releases and find that nothing materialized from what appeared tp be a deal. 2. As previously discussed, often the partner doing the purchasing does not disclose terms and the seller does not disclose quantities sold. 3. In the FC world, partner sometimes connotes interoperability rather than an actual sale or purchase, like parnering for the sake of a demo at a trade show. 4. Even when there is a known deal, how it plays out depends on whether the market chooses the system. There is still quite a bit of unpredictability involved in considering the revenue from "partners" even before you consider margins.