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

To: George Dawson who wrote (14751)	2/27/1998 9:25:00 AM
From: Craig Stevenson	Respond to of 29386

George, <<Despite the information in the conference call, I didn't think there were any major ongoing shipments of Ancor gear to Hucom.>> I'm confused on that one. The Hucom contract was extended through 1998, with increased commitments over 1997. On the other hand, I do recall this exchange from the conference call: "Steve: OK, as far as the big Japanese customer. What percentage of that contract has completed. Cal: The contract that we had in place is completed, but they have options for expansion, things of that nature." I'm not sure how to read that. It sounds like the original $7.4 million contract is done, but that there might be additional equipment needed for expansion. Maybe that's what the contract extension is all about. The increased minimum commitments could be far lower than the actual value of the previous contract. That scenario would certainly lower Ancor's dependence on Hucom going forward, but it would also lower the expected revenue from that source. Craig