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

To: Technocrat who wrote (18666)	10/17/1998 1:14:00 PM
From: George Dawson	Read Replies (2) \| Respond to of 29386

Technocrat, I am with you 100% on the QLogic story. I think Emulex is also an early marker of FC business, especially now that they have spun off their printer(?) business. For those interested in some QLogic financial details, please refer to this post: techstocks.com George D.

To: Technocrat who wrote (18666)	5/14/2000 1:27:00 PM
From: Technocrat	Read Replies (1) \| Respond to of 29386

For nostalgia, I decided to look back in the SI archives to see when a link was made between QLogic and Ancor as fibre channel plays. Look at messages 18105, 18098, et al written back in the fall of 1998. Seems like a long time ago in Ancor years. Those were Ancor's darkest days by the way. We have all had roughly a week to think about the merger and I am glad that the enlightened and generally most knowledgeable posters have grown to appreciate the deal. I have been on travel for the whole week so Friday night was my first opportunity to hear the Q's conference call. I concur with the positive assessments posted on the boards. What I kept hearing over and over for DK Desai was the phrase: "We spoke to our customers and THEY said ..." He used this phrase to amplify the superiority of Ancor technology, the need for viable second source in FC switching, the technical skills of Ancor engineers, etc., etc. From a Wall Street perspective, they can easily fill in the blanks about whom Desai is referencing. In case the analysts were too dense to figure out which OEMs were alluded to, the CEO would helpfully use his own customer list in the same breath. The guy purportedly representing Fidelity was actually backing up in a defensive mode. I disagree with the early extrapolations about how a unmerged Ancor duking it out all by its lonesome will vanquish all comers in its space. The folks with this opinion were forgetting that momentum has two variables: mass and velocity. A merger adds a lot of mass to the equation plus it would take a year or two of performance before Ancor management would be rewarded with the high multiples that QLogic, Brocade, and Cisco enjoy. Timing is everything in high tech. Ancor has some hot intellect. property and a tech lead. They needed to capitalize on this evaporating advantage as soon as possible. Note that DK said the R&D ramp costs would not be impacted. In some sense, Ancor just gained a much larger sales force and public relations department. No one has mentioned it yet, but what do you think is going through the minds of Emulex and its customers? In closing, consider the foothold that Q has that Ancor and Brocade have yet to achieve. Look at the white papers which have kicked up the most interest in the technical community. For example, check out "Intel Server Cluster Using VI Architecture for Multi-Tier Internet-based Enterprise Applications" which uses the Merrill Lynch operation as a backdrop. The cover has logos of Clarion (now EMC), Dell, Giganet, IBM, Intel, Microsoft, and QLogic. This kind of publicity is so far beyond the 1999 Ancor that I do not have to think twice about the advantages of a merger.