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

To: ronald rollins who wrote (21730)	5/12/1999 10:10:00 PM
From: Patrick Sharkey	Read Replies (3) \| Respond to of 29386

ron, thanks for the response. Did Ken say that he believed that Ancor will achieve 30-50% of that switch business, as I think he has in the past? If so, that means $480-800 million in switch revenue in the year 2002 . . . makes me dizzy to think abou the potential stock price at those levels. If margins are in the 40% range, as I think the last conference call indicated as Ancor rolls forward (although these margins may drop as volume and competition increases), then at the high end of that range of revenue Ancor will net $320 million and less at the low end. Based upon current shares oustanding of 25 million, that means $13/share profit at the high end, and 7 or so at the low end. Whatever multiple will be applied to that number will result in quite a different share price than we are experiencing now based upon quarterly revenue of $2-3 million and a loss per share. Fun to think about, and I wonder how many of us will be shareholders of Ancor in the years 2002?