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Storage Computer: Fighting Talk

Storage Computer Corp. (Nasdaq: SOS) hit a low point last year when its revenues sank to $6.5 million, down from a high of close to $40 million in the mid 90s. This year, however, the New Hampshire manufacturer of storage systems appears to be bouncing back.

Storage Computers efforts to extend its product portfolio to include NAS and SAN appliances as well as its original RAID systems are about to bear fruit, according to CEO Ted Goodlander. Goodlander says his company is “two or three weeks away” from signing its first major contract for storage products that came from its acquisition of CyberStorage Systems Corp. last year.

Goodlander believes the deal, with “a large national media corporation,” will prove that these products can catapult Storage Computer past heavyweight competitors like EMC Corp. (NYSE: EMC) and Network Appliance Inc. (Nasdaq: NTAP).

Goodlander takes particular aim at the recently announced partnership between EMC and Nortel Networks Corp. (NYSE/Toronto: NT). This envisions Nortel connecting EMC storage devices over optical links (see Nortel Lights Up Storage Networks).

Goodlander says that his company’s CyberBorg product, one of the products coming from CyberStorage, does the same job as the EMC and Nortel combo for a fraction of the price. That’s because it removes the routing layer currently required to connect a SAN to the wide area network, enabling the device to reside directly on an optical loop. The other product from CyberStorage, called CyberNAS, does the same thing.