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

To: Pigboy who wrote (16216)	5/15/1998 1:40:00 AM
From: Alan Aronoff	Respond to of 29386

I believe the point Roy was making is that Brocade needs to be generating revenue from several customers before an IPO. OEM deals are positive indicators of future growth but they are still not money in the bank (outside of possibly a minimum order guarantee). There are boatloads of OEM deals that become vapor. A few personal examples... Nuko OEM with Nortel... dead Fastcomm OEM with Alcatel for $70M... not even close Ancor OEM with Sequent... dead It makes sense to me that Brocade would want to not only win some OEMs but also ramp production in order to get as full a valuation as possible. I imagine there will be a good number of Brocade insiders who will be exiting their positions via the IPO and they certainly want to get the most out of their investment.