SCSI is losing technology. Fibrechannel is replacing SCSI very fast. In january ADPT announced the Agilent deal to make Fibrechannel HBAs when they finally realized that fibrechannel is the future. Even until few weeks ago they were talking about scsi over tcp/ip but the race is already won by Fibrechannel. Further research for interested.
http://www.semiconductor.agilent.com/news/pr/18jan2000a.html News release from HWP had no mention of exclusivity. Just a joint venture. See how HP's open SAN initiatives extend to all Host bus adapter makers including Agilent. This is where the industry is heading. Adaptec becomes a tiny player in this already grown fibrechannel market. Finally technical and pricing performance witll bring out the winners.
http://www.enterprisestorage.hp.com/7_11_00-b1.html Host Bus Adapters (HBA) vendors: Agilent, Cambex, Emulex, Interphase, JNI, and Qlogic Adaptec sells only two adapters right now. http://www.adaptec.com/products/overview/fibrechannelsolution.html They do not have a 2GB product Agilent makes their own host bus adapters. Agilent adapters seems to be competing with adapters made by Adaptec. http://www.semiconductor.agilent.com/cgi-bin/morpheus/networkProducts/productLis t.jsp?clear Query=Y&numApps=20&numProdType=20&numRates=40&criteria1=ProductType&criteria2= Application&criteria3=DataRate&bHasProductType=1&bHasApplication=1&bHasDataRate=1 &quickView=Adaptor&BV_SessionID=@@@@0895211759.0963775278@@@@&BV_Engin eID=califfifihdbemfcgjcfijcio.0 Who is the best bet in Fibrechannel sector. It is INPH wihout doubt. Best price and best growth going forward. In addition to that INPH has worlds best pci compact telecom adapter with NOK as a client. (Official announcement to come.) Do all the research. Some analysts are very stupid when it comes to technology. You saw how they touted Iridium before it got blown up. Tech investors should do all research before picking stocks. Dont follow Analysts who are trying to sell into your buying.
I had missed that the HP j-v might not be exclusive, and I thank you for bringing it to my attention. I'd still like to own this, but being on margin I thought I'd take this opportunity to almost get off margin by selling APDT at 24 5/8 (in at 18 5/8 a few weeks ago). Dr G will be so happy that I'm following his directions.
Granted, ADPT is losing certain technology; SCSI is less desirable and their revenues and income are sure to decline.
Hasn't this already been discounted in ADPTs stock price, however? It's trading at only an 11 PE.
Most importantly, what about their CD-R & CD-RW technology? What market share does Adaptec have for the creation of music CDs? The multi-billion dollar music business is being severly threatened by Napster & MP3.
If a consortium of these music titans purchased Adaptec and tried to include a registration and fee technology for stamping CDs, would this be viable? Could it create a much larger value for a troubled ADPT?