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

To: George Dawson who wrote (15552)	4/6/1998 8:51:00 AM
From: Craig Stevenson	Respond to of 29386

George, <<Are you working for Kinnard or what?>> LOL. No, I don't work for Kinnard, but it looks like I won't be retiring anytime soon, either. <g> I couldn't agree more that ANY delay in FC adoption will hurt Ancor the most. They simply don't have an alternate revenue stream, like Brocade does with Sequent. We have spent a LOT of time discussing the relative merits of Class 1, and more recently the technical superiority of the MKII. After the Sun deal, it makes you wonder whether these OEMs care. Maybe Brocade's Class 2/3 is simply good enough to do the job, and that's all Sun cared about. It seems obvious that Sun has no IMMEDIATE plans to move to Class 1. As you said, EDS may provide the best indication regarding the future of Class 1. Undoubtedly, Ancor's many detractors have hurt investor confidence in the company, whether that erosion of confidence is warranted or not. It is unfortunate that the company cannot (or will not) respond directly to some of these comments. After the Sun deal, I agree with you completely that the tech community is no more rational than any other community. To my way of thinking, this was a clear cut decision that SHOULD HAVE BEEN MADE on the technical merits. Unless there were a LOT of hidden technical issues that I'm not aware of, it appears as if it was not. The biggest advantage that Ancor (and other FC players) have is that the entire FC market is expanding rapidly. I monitor some of the other threads on SI that deal with FC companies, and things are starting to heat up. Check out the Box Hill thread, for example. (No, I'm not a BXH stockholder.) I think Ancor's future does depend in large part on signing a large OEM. If they don't deliver, I can't envision the kind of sustained revenue growth that many of us are hoping for. As far as when to invest, I can see both sides of the argument. Investing in ANCR AFTER an OEM deal might be safer, but will likely be less profitable. Craig