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To: Gary Burton who wrote (14829)	7/15/1998 12:32:00 PM
From: Andrew Vance	Respond to of 17305

AV--ADPT might own the SCSI market but they are a force to be reckoned with in the advanced technologies also. As far as the Symbios-Adaptec deal falling apart, I have a unique perspective on the subject. I see it from both sides and, beleive me, Symbios was not about to bail out ADPT on anything. Major programs at Symbios did not come to fruition and their foray into SCSI adapter boards looks like it did not skyrocket, expecially with HP (some new HP scanners do not have the SCSI interface). The marriage was going to be unwholesome since ADPT has had trouble integrating businesses thay have taken over in a timely fashion. This would have been its largest acquisition. Without goinginto many gory details, I am elated that ADPT will not be burdened with the inefficient and poorly managed Symbios. I do not think ADPT did a real thorough investigation on what they were going to get into. The Design talent on both sides are restless and expected each other to provide some miracle from the IP each coveted from the other. The design libraries were not as compatible as one would have thought. ADPT is a fabless company and Symbios doesn't know how to run its fabs. Besides, Symbios was trying to move towards the ADPT model by working towards going fabless. As of a few months ago, Symbios was unable to manufacture its most advanced technology in-house and was relying on foundries or Hyundai to do the start up of the technology. I think that ADPT was blinded by the prospect of acquiring the RAID business in Wichita, KS since it is a jewel of an operation that will come into its own. I would not be surprised to see the RAID operation either sold by LSI to ADPT or spun off into an independent operational company. Finally, the only other interesting parts to the ADPT-Symbios marriage was that Symbios was a good player in the UNIX type hardware markets while ADPT was proficient in the lower end file servers and PC type markets. The combination would have been real interesting. HOWEVER, ADPT and Symbios hated each others guts. I would not say they were fierce competitors which breeded some negative competitive practices but rather certain highly placed individuals in each company would do almost anything to create a world of hurt for the other. The closest I could come to an explanation would be to compare it to extreme bigotry. So even if they did merge, an environment of extreme non-cooperation would have prevailed until such time as the jerks were weeded out on both sides. As I said, an unwholesome marriage. The LSI deal is not a perfect marriage but at least these two competitors were not trying to lob hand grenades over the wall at each other. A couple of rough edges which can be easily taken care of and a smooth transition could occur. Of course, LSI will still have to deal with some of the jerks that still remain at Symbios. Keep in mind, that when you compare the genealogy and growth of both companies you will see that Symbios is a laggard. Andrew BTW-I would not be investing in ADPT just yet. I think we have a quarter or two before it makes its turnaround within the industry. they are getting creamed due ot the SE Asia nonsense.