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

To: KJ. Moy who wrote (21239)	3/27/1999 10:42:00 PM
From: George Dawson	Read Replies (1) \| Respond to of 29386

KJ, Looking at Ancor's 10K shows ballpark figures for developing FC. Ancor's operating expenses last year were $12,646,000 and their R & D costs were: Research and development expenditures were $5,450,942, $4,271,393, and $3,198,155 in 1998, 1997 and 1996 respectively. That is for a group of proven engineers in an established facility. George

To: KJ. Moy who wrote (21239)	3/28/1999 1:53:00 AM
From: Douglas Nordgren	Respond to of 29386

<<Return on the investment and the risk is just not worth it to them.>> They couldn't buy BRCD as cheap as they would have liked, and EMLX clocked 100,000 IO/sec on their newest 64 bit PCI HBA. Usually, when a tech company decides to spend money buying back 10 million shares, R&D takes the hit. They'll be back into FC as they regain financial health, that being their immediate concern. The current SAN market is still immature and some key standards battles loom to be fought among dominant companies. No one is sure how this will play out, but 3Com is sure it won't be soon enough. They need a FC market where they can bring economy of scale into the competitive landscape, and that market is realistically at least two years away. ADPT came to the same conclusion and jettisoned FC for the short term. The FC market merely starts with SANs and the pot needs to be much bigger to attract the "big boys" to buy into the table.