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Technology Stocks : MTIC - Is this the next EMC? -- Ignore unavailable to you. Want to Upgrade?

To: gmccon who wrote (3343)	4/27/1999 8:23:00 AM
From: jim nazium	Read Replies (1) \| Respond to of 3748

Mylex's stock is down because they released their Dec quarter on 1/29 and gave some very aggressive forecasts on the conference call and 6 weeks later pre-released bad numbers and eventually lost money. They have lost money now for 9 straight quarters (although operationally they say they made money in the Dec q). Mylex lost millions of dollars on a division they started up and folded a couple years later called Network Power and Light. Mylex also was late on delivering product they promised in mid to late 1998 for external controllers. This late delivery hurt MTIC and caused them to miss numbers. Because of Mylex's continued losses and lack of focus was the reason why MTIC developed their own controller and it also gives them more of their technology. Mylex's main problems now continue to be their lower end business and Europe and they indicated that this will continue to be a problem (ADPT has been entering this market). On the positive side they are winning several large OEM's on the external side and would expect to see a ramp up later in the year. Also they are going to eventually lose MTI as a customer which is around 5% of their business. I do not own Mylex but am tempted here due to their recent design wins but management has a severe credibility issue. One of the analysts covering the stock spoke to the company the night before the pre-release in March and they said everything was great and he wrote a report upgrading his rating and sent it out early the next morning. The company then halted the stock and announced missing numbers. The analyst does not cover the stock anymore. Despite was David has posted, Mylex has acknowledged on their call that their FC controllers do not have the partitioning function(multi=host function) and do not know when they will have it, DGN announced on their call that their multi-attached feature will be coming later in the year. Call investor relations for replays.