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

To: nic who wrote (14453)	2/19/1998 8:18:00 AM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

Nic, I don't understand the recurring "special" charges either. There are statements to the effect that they are moving away from some areas of the Fibre Channel market to focus on others, but they don't really tell us what they are moving away from. Storage seems to be the focus now, which makes sense. It also appears to me that they will be cutting off some of their under-performing resellers. I don't understand the financing well enough to comment. It is curious that the deal will close sometime today. I wonder if the pricing of the deal is based on the closing price for the previous x number of days? At least there shouldn't be another "going concern" statement. Craig

To: nic who wrote (14453)	2/19/1998 8:20:00 AM
From: Nine_USA	Read Replies (2) \| Respond to of 29386

This time the financing (which closes today) comes with the stock at 8. Last time it was below 5. While we don't have the financing details, it seems the conversion price should be in the 8 neighborhood. So value was perceived by these investors at this level. And they have a very good record when it comes to evaluating Ancor.

To: nic who wrote (14453)	2/19/1998 8:48:00 AM
From: Dean Wilson	Read Replies (1) \| Respond to of 29386

Nic, you wrote: <<but once again we've thrown in everything but the kitchen sink... 10 cents in special charges! Just how many quarters can you do that and still call them "special"?>> I agree. In 4th quarter of 1996 we thought ANCR threw everything in but the kitchen sink; in 3rd quarter of 1997, we thought the same thing, saying "let's let Snyder and company clean things up this quarter, so we can get on with it." Well, surprise, surprise. They decided they needed to clean house for yet another quarter. This is hard to take. And the annual losses: ANCR has a frightfully accelerating pattern here for the last three years comparing year to year: (26%),(62%), (86%). Wow. It's OFFICIAL (except for the audit): 1997 was a real scorcher! Dean still long . . . barely

To: nic who wrote (14453)	2/19/1998 9:11:00 AM
From: Neil S	Respond to of 29386

Quick Look: Charges- The result of biting the bullet and narrowing the focus in high performance networking applications to four specific niche verticles where they have had success, with customers who can benefit from the performance advantage of FC, marketed through resellers who know the customer. Reality.com. Financing- If the holders of the Series B are still holders from Mar 97 then they are more investors than traders. Depends on price, but the primary variable is "get the money" to support pending Storage OEM rollout in second half, dilution is a fact of life in this kind of development state company. Brocade has had four rounds of financing since being founded in 1995. Storage OEM- Story remains unchangen from Q3. Sounds like they feel they are very competitive...TBD. IBM Installation- That's a good thing. Data backup's back. FC chosen over ATM and GE. Interesting. Neil