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

To: Ken Richard who wrote (18404)	10/7/1998 12:04:00 AM
From: Kerry Lee	Respond to of 29386

Payment from Netmarks to Ancor for the product bought previously by Hucom is a NON-ISSUE. The only question is whether Ancor will recover $500,000, $1 million or something in-between. My percentages were extrapolated from conversation this afternoon with Ancor official. People are free to call up Ancor tomorrow to verify for themselves that Ancor will finally 1) recognize the revenue/shipments in Q4 and 2) receive payment from Netmarks in Q4. Moot point.

To: Ken Richard who wrote (18404)	10/7/1998 12:27:00 AM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

>>> I have no backup on this, but I would be shocked if NetMarks was able to "skate" on a windfall at the same time ANCR is negotiating a reseller agreement with them...<<< Ken-I think what Kerry is really saying is one better then that. Netmark sounds they are negotiating a deal with Ancor, where Ancor gets at least 1/2 and possibly all of the money owed them by Hucom instead of walking away from that obligation. It would only make sense from Metmarks point of view to do that for two reasons. One is a PR/legal point of view. They took on Hucom(saw value in Hucom) and are honoring their debts as to make sure their own channels retain their good credit. If a client of mine goes out of business and doesn't pay me, then opens up with new money or under a different name and then calls me up to do new work for him, I'd say no unless we settled the old bill under some negotiated agreement or unless I got the new work with money totally payed before I did the job. Reason 2)which is the one better is that Netmark would see making more money from Ancor then the $500K to $1 million they would possibly pay out to Ancor and it made economic sense to negotiate with Ancor. Not sure how bankruptcies work in Japan.Does Netmark have an obligation to Ancor through Hucom? Faulty logic here?