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

To: ronald rollins who wrote (21734)	5/13/1999 12:11:00 AM
From: Greg Hull	Respond to of 29386

I'll post more comments and observations later, but the overwhelming impression I came away from the meeting and post-meeting discussions is that Ancor is very bullish about their future. As has already been pointed out, they agree with the IDC report that shows 112% CAGR through 2002. They believe they can maintain 40+% GM even with declining prices. While they can run the company with a 20% SG&A, they think it is probably in the shareholders' best interest to keep investing in the technology and therefore have an SG&A in the low 20s. This leaves a net profit margin in the high teens to possibly low 20s. Volume will ramp Q4 or sooner. I think George did a splendid job summarizing the meeting and I'll underscore a few of his points as soon as I get a chance. Greg