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

To: Neil S who wrote (16188)	5/14/1998 11:04:00 AM
From: Craig Stevenson	Read Replies (4) \| Respond to of 29386

To All, A few other thoughts about my visit to Ancor yesterday: * I still can't get over how impressed I was with the technology behind the MKII. There is only one board in the unit, and it appears deceptively simple, especially when compared to the 1/4 Gig gear. (Due in large part to the custom Ancor-designed ASIC.) Because of this simplicity, it should be extremely reliable, which is borne out by the high MTBF ratings. * One surprise was that there are not a lot of switches at Ancor's HQ. I joked about wanting to see the shipping department, so I could read the shipping labels. <g> Basically, MSL drop ships the units directly to the customer. I did not ask whether MSL maintained an inventory of switches, or if they just built them to order. * There is a quiet confidence that surrounds the management team. My hunch is that they know how big the Fibre Channel market will become, and they think that Ancor will be a player in that market. Of course, due to NDA, they wouldn't talk about any specifics. * This NDA question probably deserves another note. I think that Ancor has become MUCH MORE hesitant to attach potential numbers to any of their contracts due to the lawsuit. (The revenue potential on some of the existing contracts may be bigger than we realize, but I don't think we will see any projections until they are a reality.) I'm not an attorney, but if some of the recent revenue numbers that I've been hearing regarding Sequent/Brocade are true, it seems as if part of the lawsuit would have little merit. Patrick? * The people that designed the industrial complex in that area must not have known what a ruler was. There isn't a straight road in the entire area. (This should prove to people who know the area that I was really there. <g>) Craig

To: Neil S who wrote (16188)	5/14/1998 11:16:00 AM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

To All, After my visit to Ancor yesterday, and having some time to ponder what I saw and heard, I have come to several conclusions. It will be VERY difficult to get a heads-up on any potential OEM deals. The new management team is VERY conscious of their responsibilities under NDA, and as we have seen recently, leaks are few and far between. (At least reliable ones. <g>) Although we have been criticized for this in the past, I think the best way to anticipate the size of this market is simply to follow Ancor's competitors and the other Fibre Channel players. For example, in order to gauge the success of the Fibre Channel market and the demand for switches, we need to closely monitor the adapter, hub, and storage guys. If nobody is selling adapters or storage units, there won't be much demand for hubs and/or switches. On the other hand, if we continue to see record quarters from QLogic and others, that would seem to indicate growing acceptance of Fibre Channel. I also believe that any OEM announcement, whether by Ancor, Brocade, or Vixel/Arcxel is a positive for Ancor in the long term, simply because it validates that this is an expanding market that may have more than one winner. The more players that decide to use Fibre Channel, the bigger the market becomes. Craig