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Reversals of Fortune: Page 3 of 4

Needless to say, McData ends up with a much higher ranking than Brocade, which lands (whumpppppp!) at the No. 10 spot on the list.

Fortune, comrades, is a fickle mistress.

Meanwhile, for the storage industry at large, the Byte and Switch Insider report reveals some generally positive signs. For example, every company with the exception of Brocade had sequential revenue growth in Q4 2002. That said, six of them had sequential revenue declines in Q1 2003, and, even though some of this must be attributed to seasonal spending factors, it shows IT spending has not fully bounced back.

QLogic ends up with the best overall rating, although it also has the highest relative valuation of any of its peers with a price-to-sales ratio 40 percent higher than the next closest company (see QLogic Tops B&S Insider Ranking).

Note that we considered only companies that derive all or nearly all of their revenues from storage hardware, software, or services, which means we exclude big storage players, including Hewlett-Packard Co. (NYSE: HPQ) and IBM Corp. (NYSE: IBM). The companies included in this report, which we selected based on size of market capitalization, are: