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

To: Fang Li who wrote (17316)	7/23/1998 2:24:00 PM
From: w2j2	Respond to of 29386

Fang Li, I agree. If fibre channel becomes big in both the san and lan,(and I believe it will) the leading companies will offer the whole range of FC products. I inferred from the call that the IBM storage business (along with most other big OEM's) has gone to Brocade. I gather that the company is virtually starting from scratch in the san business, and hoping to become a second tier switch maker behind brocade. Given the poker hand they hold, I think they are doing all the right things. They WILL have to SELL the company, but I think they want to get the stock price up first with an OEM or two, even if second tier. IMHO :( wj

To: Fang Li who wrote (17316)	7/23/1998 2:27:00 PM
From: Patrick Sharkey	Read Replies (3) \| Respond to of 29386

Craig Stevenson, great job on the conference call -- just listened to the replay. In my opinion, what I heard was a management team struggling with the recognition that they did not have a clue about how to deal with an emerging market in storage, and a management team that at least has made a decision that its' limited resources cannot be deployed in both the LAN environment and the SAN environment. That is the good news in one sense (more on this below); however, if I was on the jury, I detected hints at problems with the MKII at the early stages, and that the "real MKII" was not out there in the real world until some point after it was announced, and that the initial announcement was one concerning a working prototype, and not the product which they have out there now. While the numbers a bleak, and the near-term future poor, at least this management team has not booked evaluation product as revenue, and that there will be no surprises in that regard. That being said, it startles me to see a charge to the PL of $4 million of "old product". If there really was any type or kind of LAN market out there for that product, it could be sold -- even at a deep discount; instead it is being written off, which leads me to conclude that there is virtually no demand on the LAN side for fibre channel, or that Ancor realized that it won't be around as a company to see that demand if they continue to pursue sales in that area. What, exactly, is behind that write off?

To: Fang Li who wrote (17316)	7/23/1998 5:33:00 PM
From: Craig Stevenson	Respond to of 29386

Fang Li, The Yahoo board has been spreading some rumors about a possible buyout, but I'm not sure Ancor management would consider that. I think they honestly believe they can make a go of it. I think it's going to be extremely difficult, but if the Fibre Channel market heats up quickly, they do have a chance. I think the most beneficial financing scenario for Ancor would be to get some sort of equity investment from some big company. That way, they could get the cash they need, without the dilution to existing shareholders. Repayment could be in the form of Fibre Channel switches or ASICs. Craig