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

To: J Fieb who wrote (20690)	2/11/1999 1:38:00 AM
From: Fang Li	Read Replies (1) \| Respond to of 29386

Here is what made emlx and qlgc up in the last three months. Emulex Corporation www.emulex.com Emulex Corporation, located in Costa Mesa, California, is a leading designer and supplier of high-performance network connectivity products, including Fibre Channel host bus adapters and hubs, printer servers and network access products. The company's hardware- and software-based networking and I/O solutions improve communication in computer networks and enhance data flow between computers and peripherals. Emulex's early time-to-market has helped it secure a leading market position in the Fibre Channel space. The company has won a significant share of the mid-range Unix and high-end mainframe opportunities for its host bus adapters, resulting in more than 60 design wins spanning in excess of 30 OEM customers. Emulex has also expanded its Fibre Channel revenue potential with the introduction of the first hub product that offers digital connectivity to the industry. The higher signal integrity and software management features of this product make it an attractive solution for enterprise storage applications. Emulex has secured significant share of what is being forecasted as a $1-$2 billion opportunity in 2000. The company's core strength is its software expertise. Emulex has won key programs in its printer server division due to its ability to offer software support that spans multiple operating platforms. As a result, the company secured ten key OEM customers, a list that includes IBM's (IBM - $147 3/8) Network Printer division. The network printer server market has migrated from a retrofit/distribution focus to one targeting OEM relationships, as an increased percentage of new printers are being configured for networks by the manufacturers. Emulex is nearing the completion of a restructuring that includes the relinquishing of its manufacturing operations through the sale of its facility in Puerto Rico. The company has outsourced this effort to K*Tec, a division of Kent Electronics (KNT - $15 3/16). This offers the company the opportunity to significantly improve its financial condition through greater inventory turns and higher gross margins. The decision appears to be well timed, given market forecasts for higher unit volumes of products based on Fibre Channel in the coming years. --Overview dated November 4, 1998. To order a detailed research report on this and many other companies we cover, click on the link at the bottom of this page. QLogic Corporation www.qlc.com QLogic Corporation of Costa Mesa, California, is emerging as a top-tier developer and supplier of input/output (I/O) controller chips and adapter cards for computer networks. SCSI products speed up the rate of data transmission between a personal computer or workstation and its peripherals, such as hard disk drives, external disk drives, CD-ROM drives, tape drives, and scanners. QLogic was originally referred to as EMD, the micro-device division of Emulex Corporation (EMLX - $16). The company was established as a separate corporation in November of 1992 and was spun off to Emulex shareholders in February of 1994. The company now sells its products primarily to OEMs. Leveraging its success at taking share in the OEM market for SCSI solutions, QLogic has secured a dominant position in the OEM market for host and peripheral products that utilize Fibre Channel, a high-speed successor to SCSI that is rapidly becoming the preferred interface for disk storage applications. A significant number of host relationships have been won with leading manufacturers of workstations, servers, and RAID storage bringing new customers into QLogic's sales flow. This expanded customer base has the potential of providing strong revenue growth, particularly now that the mid-range market is strongly endorsing Fibre Channel technology for external attachment of disk arrays. QLogic has seen particular success in the Windows NT environment, which carries the potential for high-volume shipments of host bus adapters (HBAs). On the peripheral side of the business, QLogic should also experience growth from its disk controller chips, which have achieved design win success with leading disk drive manufacturers such as Hitachi (HIT - $49 1/2) and Fujitsu. --Overview dated October 20, 1998. Order Morgan Keegan research report.