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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Torben Noerup Nielsen who wrote (2082)	5/7/1998 10:24:00 PM
From: Starowl	Respond to of 5944

Torben: The Adaptec press release suggests strongly ("defer") timing may be a factor on Device Bay--"a plug-and-play universal open bay for various peripherals first proposed by Microsoft, Intel, and Compaq." However, another article published the same week indicated some in the industry were cynical about Adaptec's decision: "Some insiders familiar with the players in the I/O standards bodies say this is a deliberate attempt by Adaptec to slow down deployment of IEEE 1394 as the new I/O bus. "Adaptec is petrified of device bay because if you take three steps back, their real interest is maintaining the SCSI world," said one source. "In a generation-and-a-half to two, SCSI falls to the wayside, fiber is on the high end, and then device bay and 1394 take over the low end," the source said. "There are already RAID storage systems under development which will use 1394, [rather than traditional SCSI]," he said. An Adaptec spokesman responded: "No matter how much we try and convince people to the contrary they are going to believe that we are trying to slow down 1394 in favor of SCSI. That is not true," said Botchek, while admitting that the company's decision may indeed slow down implementation of a new bus. "Our decision may slow down 1394, but we would rather work on areas where we are getting payback. We were being the good industry citizen and enabling the industry and not helping ourselves make any money," he said. Botchek cited as reasons for the pull back the unwillingness of many others in the industry to support a more costly standard. "Device bay as it is currently being proposed will add as much as $100 onto the OEM price of a system," he said. Here's a link to the article: infoworld.com Starowl

To: Torben Noerup Nielsen who wrote (2082)	5/8/1998 3:08:00 PM
From: Doug	Read Replies (1) \| Respond to of 5944

Torben: During the last Q, ADPT's revenue declined by 23% and its Income fell even more. The Company claimed that decline was due to General PC pricing pressures.These pressures have not declined. It would seem that ADPT was quite unable to increase its sales in the Server mkt to make up for that shortfall. In the light of the above, how do you see Sales and Income increasing from the existing levels.? If one extrapolates data from the last 2 Q's , it is likely that Income may further decline although revenue will increase due to the acquisition. Thx