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

To: iceburg who wrote (18894)	10/28/1998 10:16:00 AM
From: Kerry Lee	Read Replies (3) \| Respond to of 29386

Your number is wrong. There is $3.9 M cash AND $1.0 million in short term investments as of Sept 30 = $4.9 Million cash/cash equivalent. Then factor in 2 more $3.0 million payments from Inrange plus Boeing and Netmarks cash..I think cash needs may be driven by timing/size of OEM inventory build.Also, Inrange warrants generate additional cash: 250,000 warrants exercisable at $2.50 250,000 at $5.00 250,000 at $10.00 IF all the above warrants are exercised by Inrange, Ancor receives an additional $4.4 million in cash.The confusing part is that I think I heard that when the warrants are exercised, they reverse a portion of the revenues?? What did everyone else hear?

To: iceburg who wrote (18894)	10/29/1998 12:47:00 PM
From: Craig Stevenson	Read Replies (1) \| Respond to of 29386

Steve, <<Did they address when they would need more cash, or address how they were planning on obtaining it?>> I thought Steve Snyder said something to the effect that they wouldn't need any SHORT TERM financing. However, if the INRANGE revenue gets recognized over a five year period, I think there would continue to be some overhead from that deal over that same period. My thoughts were similar to Dale from Paine-Webber. I think we both were thinking that we would see at least $7 Million spread out over Q4, Q1, and Q2. Unfortunately, because of the revenue recognition stance that they have taken, the cash burn rate will continue to be high, and the INRANGE revenue won't hit the top or bottom lines in significant amounts. That could be why we didn't see the big pop after the announcement. I guess I'm more disappointed in the INRANGE deal than I thought I would be. Undoubtedly, it was an important contract, along with an important financing deal, but Ancor still needs an OEM deal that simply says, "we want what you have NOW, and are willing to pay for it". Craig