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To: nic who wrote (14453)	2/19/1998 8:18:00 AM
From: Craig Stevenson	of 29386

Nic, I don't understand the recurring "special" charges either. There are statements to the effect that they are moving away from some areas of the Fibre Channel market to focus on others, but they don't really tell us what they are moving away from. Storage seems to be the focus now, which makes sense. It also appears to me that they will be cutting off some of their under-performing resellers. I don't understand the financing well enough to comment. It is curious that the deal will close sometime today. I wonder if the pricing of the deal is based on the closing price for the previous x number of days? At least there shouldn't be another "going concern" statement. Craig

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To: nic who wrote (14453)	2/19/1998 8:48:00 AM
From: Dean Wilson	of 29386

Nic, you wrote: <<but once again we've thrown in everything but the kitchen sink... 10 cents in special charges! Just how many quarters can you do that and still call them "special"?>> I agree. In 4th quarter of 1996 we thought ANCR threw everything in but the kitchen sink; in 3rd quarter of 1997, we thought the same thing, saying "let's let Snyder and company clean things up this quarter, so we can get on with it." Well, surprise, surprise. They decided they needed to clean house for yet another quarter. This is hard to take. And the annual losses: ANCR has a frightfully accelerating pattern here for the last three years comparing year to year: (26%),(62%), (86%). Wow. It's OFFICIAL (except for the audit): 1997 was a real scorcher! Dean still long . . . barely

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To: joe v who wrote (14460)	2/19/1998 8:52:00 AM
From: iceburg	of 29386

I like that the Reg-D holders that held on were rewarded with the opportunity to supply the next round of financing. I also liked that the shares are not automatically converted until the year 2001. It appears these guys might be in for the long haul. The testimonial from IBM was very nice. I think the entire FC community will glom onto that one. The special charge was special. I suppose we are still cleaning out useless inventory from the previous team. With a market cap of around 100M, I guess a 1M write-off isn't going to damage their real value though - whatever that winds up being - somewhere between 0 and 1Bill I suppose. On track on OEMs sounds nice. Steve

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