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

To: Lhn5 who wrote (18975)	10/30/1998 7:37:00 AM
From: Craig Stevenson	Respond to of 29386

Larry, <<I don't see the purpose of the obsession with the accounting treatment of the Inrange money. The Paine Webber guy, I thought, was nuts to complain that he wanted to see some improvement in the balance sheet.>> I have to disagree with you on this one. I think Dale and I see this one pretty much the same. Both of us want the numbers to hit the top and bottom lines. I've been saying this for years, and I'm sure Dale has too. I remember one conference call when he grilled Ancor pretty hard for the lack of numbers. The rationale behind that is that it provides a fundamental based floor for the stock price. When there aren't any numbers, the stock price can go down pretty far, as we have found out, because there is no fundamental basis to support it. If Ancor had recognized the revenue from the INRANGE deal as $3 million per quarter, then you could extrapolate that out to be a $12 million run rate. Then the various price to sales ratios are applicable. (Granted, this was only one deal, but it would have given Ancor three quarters to get another one, and would have provided a revenue floor in the meantime.) Earnings work the same way. If the INRANGE deal, along with a few others got us to within striking distance of profitability, then we could project a price to earnings ratio. Perhaps it is more perception than reality, but we need more than a bunch of techie types to get the stock price moving up sharply. <g> We need the big financial types to get in here, and I think some decent revenue and earnings numbers would help tremendously. Craig