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

To: Alan Aronoff who wrote (16192)	5/14/1998 11:26:00 AM
From: trendmastr	Respond to of 29386

Ancor filed new 10-Q today........sorry don't know how to link it. If you want to search Edgar by time , 10-Q was filed at 10:49:13 a.m. tm ================================================================================ UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q QUARTERLY REPORT UNDER SECTION 13 OR 15(D) OF THE SECURITIES EXCHANGE ACT OF 1934 For Quarterly Period Ended March 31, 1998 -------------- Commission File Number 1-2982 ------ ANCOR COMMUNICATIONS, INCORPORATED ---------------------------------- (Exact name of small business issuer as specified in its charter)

To: Alan Aronoff who wrote (16192)	5/14/1998 11:52:00 AM
From: Alan Aronoff	Read Replies (1) \| Respond to of 29386

A few quotes from the 10-Q I found interesting... Regarding net sales << Net sales for the first quarter 1998 decreased by approximately $761,000 (42%) from 1997 to $1,042,227. This decrease in net sales is due primarily to a significant decrease in net sales to the Company's Japanese distributor, Hucom, Inc., whose implementation of product was delayed. International net sales in the first quarter decreased from approximately $1,501,000 in 1997 to approximately $657,000 in 1998, representing 63% of net sales to all customers for the first quarter of 1998. Domestic sales volume in the three month period ending March 31, 1998, increased by 28% from the similar period in 1997, as the Company recorded a large sale in the domestic high-speed data backup market. >> Hucom's "implementation of product was delayed." So that is probably the $1M that shipped in April. But does this mean that part or all of the $657,000 in international net sales in Q1 went to non-Hucom customers? It would certainly be a positive development if Ancor is managing to expand its customer base. Regarding product returns << There was no allowance recorded in the first quarter of 1998...The reserve at March 31, 1998, was approximately $454,000 ($650,000 gross sales less the estimated value of product to be returned). >> Regarding gross profit << Whereas the gross margin percentage for the first quarter of 1998 was positively impacted because the mix of product sold during this period carried greater margins than that sold in the comparable period in 1997, due to the significantly lower sales volume, the indirect costs brought the overall gross profit percentage down.>> More switches and less adapter cards.. a good trend. Regarding operating expense << Also included in this increase is a charge of approximately $100,000 to reflect compensation owed a former executive of the Company whose services are being discontinued. The amount of the charge was based on the compensation payable to such officer under the terms of the officer's employment contract. >> I thought Ancor was done with Steve O. Is this Dale Showers or someone else? Regarding lawsuit << The lawsuit was amended on December 1, 1997, by the plaintiffs after the Company moved to dismiss the initial complaint. The amended complaint alleges the same claims as the initial complaint. On March 16, 1998 the Company filed its motion to dismiss the amended complaint, which was heard on April 24, 1998. This action is in its preliminary stages and discovery is currently stayed. The Company believes that the lawsuit is without merit and intends to defend it vigorously. >>