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

To: richroni who wrote (18953)	10/29/1998 5:27:00 PM
From: Patrick Sharkey	Respond to of 29386

Richard, your thoughts on the subject appear logical and quite sound, and thanks for sharing them with me. As the full picture emerges, the Inrange deal may be more of a financing deal, or as much a financing deal, as it is a product deal. Some or all of the revenue (probably all since none was recognized) may be at risk in response to a failure of performance by Ancor, in which case Inrange would seek a return of the cash payments. To induce Inrange to part with cash Inrange may have sought and received significant discounts on the actual price being charged for product when delivered. Hence, my prior questions about whether or not someon could ask about the expected margins on the Inrange product; whatever they are, they probably are signficantly less than they would have been in the absence of the advance payments by Inrange. I don't have any basis to question the wisdom of the deal, and I assume that this type of arrangement proably is better for the company and shareholders than yet another Reg financing. Certainly any technology deal reflecting some degree of market acceptance is better than not having one, but I still want to see full disclosure by the Company of the financial specifics of this transaction. Pat