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

To: doc who wrote (20711)	2/11/1999 11:26:00 AM
From: Pierre Aydin	Read Replies (1) \| Respond to of 29386

Sold all of my position last couple of days. It seems to me it will stay around this level unless they come up with a killer OEM. The fact that it went up with strong volume is a good sign but could not punch thru the $9 was a disappointment. I am not complaining since I got my purchases below $3. Will be watching it closely. Pierre

To: doc who wrote (20711)	2/11/1999 11:29:00 AM
From: Nine_USA	Read Replies (2) \| Respond to of 29386

I think the contract manufacturer was called Penstar. Ken also said the fact that it was well funded took away some of the rampup financing need. Other recollections: Ken estimated the number of OEMs to be 1-30, NOT just 30. Breakeven was $7-8m in revenues with a margin in the low forties. Some OEMs possessed 'multiple laboratories', each being a potential customer. Cal felt that Ancor switch architecture provided more flexability and lower costs and that Ancor patents gave some protection against competitors using Ancor architecture to achieve these goals...but he couldn't rule out different approaches to get around the patents. Ancor's ability to attract highly qualified recruits recently, atttested to the company being very highly regarded. I thought Ken said $1.6b in 2002 for ALL FC industry products, not just switches. All four recent Ancor OEMs contracts had competing vendors. Revenues would be 'lumpy' from now until rampup. Time to develop a state of the art switch could be 2-3 years. This was said in the context of CSCO, COMS, and LU with the unsaid implication that they would probably buy, not develop. Ancor products 'really shine' for applications where low cost, and scalability are vital considerations. Several times, Cal mentioned Ancor product reliability as something they emphasized when making serious marketing presentations. 1999 financing needs were covered, although a rampup in production may need additional financing.