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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Jim Switz who wrote (4316)	1/25/1999 5:36:00 PM
From: James McMahon Jr.	Respond to of 5944

My guess for opening tomorrow....gap up to $26.25.

To: Jim Switz who wrote (4316)	1/25/1999 6:39:00 PM
From: Starowl	Respond to of 5944

Lots of positives; and I didn't see any negatives. The relatively small buyback of shares is surprising, but apparently at the recommendation of the legal team. So, we still have about 107-108M shares outstanding. And the average buyback price was about $18/share ($9M/500,000 shares). Another surprise was the cash on hand: $655M. There is comfort in cash. I was also very interested in comments on the RAID product introduced earlier this month and used in both the Dell PowerEdge server and its Power Vault storage system. The statement released today claims the AAC-364 is the industry's "first true 64-bit RAID controller" and the "flagship performer". What about the Mylex "64-bit" RAID controllers? Adaptec said its new product "heralds a new era of RAID development and focus at Adaptec." Boucher said he has no concerns about production capacity of RAID ("fine shape") and that there are some other OEMs beyond Dell with which the company is in "serious discussions". And that while there will continue to be incremental increases in revenue from SCSI sales the majority of revenue increases will be from RAID. On SCSI, it (SCSI) still owns 100 percent of the high-end workstation market, having yielded to UDMA in the low-end. Will have the 160M SCSI product ready when there is a market, probably by summer. Quantum, at least, expects to have a drive product for the 160M SCSI by then. And it seems Adaptec will be reaching its goal to reduce operating costs to 35 percent for Q1 2000. Last, but not least, the Easy CD Creator Software is described as the "defacto desktop standard" and its market acceptance has put Adaptec in a strong position as newer technology applications come along which I take to mean DVD software next down the pike. Now is it 0.26 or 0.24? (I, of course, figured my 0.24 guess based on including the PTS revenue and costs. :-) ) Starowl And let's not forget Fiber Channel. Boucher restated his confidence that Adaptec can get back into FC when it looks profitable. I wonder if Adaptec's relationship with JNI, which absorbed the company's FC efforts in return for an Adaptec equity stake in JNI, envisions an eventual merger if FC begins to take off. Just wondering.