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

To: Louie Liu who wrote (21213)	3/24/1999 10:32:00 PM
From: iceburg	Respond to of 29386

Louie, Brocade did not decide to go public now out of desperation. I believe you will find that they timed it to coincide with lots of FC announcements, from Brocade as well as other players. The FC switch market is still going to be huge, the time frame is no longer continuing to be pushed out. Steve

To: Louie Liu who wrote (21213)	3/25/1999 2:17:00 AM
From: George Dawson	Respond to of 29386

Louie, I agree with your analysis except for the following points: 1. The three conditions suggested by SI contributors are probably not accurate. Clearly none of the detractors knows anything about Ancor's game plan, products, or customers. It is just as likely that SI contributors know nothing about Brocade's plans. 2. The FC universe in 98 was small - but it has definitely picked up in 99. Investors need some credible evidence that it will grow as projected. That is the reason that big OEMs or some actual numbers are important. 3. Timing is everything and a flurry of announcements by all of the switch makers could easily change the psychology from fundamentals to speculation. George

To: Louie Liu who wrote (21213)	3/25/1999 11:31:00 AM
From: Fang Li	Read Replies (3) \| Respond to of 29386

Louie, If Ancor can only get 30%-50% of the FC switch market, Brocade will have bigger or the same potential as Ancor. The question is how big is the switch market. Last year was bad for entire FC industry, Ancor went down to $1, Qlgc went down to $25, Emulex went down to $6, and look where they are now. Things are getting better and hope it will be great. Right now, EMC, HDS are the only hope I can see to push FC in 99, IBM is a lesser force because it has SSA to sell, and SUN has not made a move in last two years and were trying to slow things down. Ancor to go with EMC is the right move. In general, EMC, HDS, and IBM will be the major pushing force in 99. EMC has seen its FC business grow from $100M in 97 to $800M in 98, all these FC installation will be the market for switch upgrade in the future. From Brocade's S-1, I can sense that Brocade has been had similar problems that Ancor had, a lots of returned stuff to charge.