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

To: Lhn5 who wrote (15950)	4/29/1998 10:20:00 AM
From: Craig Stevenson	Read Replies (6) \| Respond to of 29386

To All, Sorry I wasn't able to update you on the conference call right away. I was too busy asking questions. <g> I have tried to gather my thoughts a little bit, and here are some key points, as I see them. On the negative side. 1. The numbers. Both revenues and earnings were awful. 2. Widespread Fibre Channel implementation is getting pushed out to late 1998, and early 1999, as I suspected. 3. There is decreasing interest in Class 1. This was a MAJOR surprise to me, as you can tell if you listen to the call. Adapter companies are already dropping support for Class 1/Intermix. This does not affect large installations that require Class 1 for scalability reasons, but it does show once again how accurate Brocade's vision of the market really was. On the positive side. 1. There was more cash and equivalents on the balance sheet than I thought there might be. (Approximately $10 million) That should take them through 1998, and possibly a quarter into 1999. 2. IBM Global Services ordered additional switches in the quarter, and there is reason to believe that this relationship will help leverage Ancor into additional OEM storage opportunities at IBM. (This was REALLY good news.) 3. They haven't seen much competition from Gigabit Ethernet in the SAN space. 4. Ken said that he thought there were between 10 and 20 OEM opportunities worldwide. 5. No charges associated with Sun! This is one case where I actually enjoyed being wrong. <g> 6. If you take away Sequent from Brocade, Ken thinks that they (Ancor and Brocade) are about even. Sequent is currently the ONLY major OEM shipping Fibre Channel in volume. 7. Hucom continues to aggressively push Fibre Channel. They were the largest customer in the quarter. They have approximately two dozen people working on Fibre Channel. Craig