EQUIPMENT MAKERS Data Storage Goes Into Slump Industry sales have slowed, but analysts say long-term prospects are good.(A)

By Brian Deagon

Investor's Business Daily

Those holding out hope the data storage industry would weather the storm that's hit dot-coms, telecoms and computer makers in the past year have had their spirits broken.

The trouble began when Emulex Corp., a supplier of high-speed components to the data storage industry, warned in mid-February that customers were deferringorders.

About 10 days later bellwether storage company EMC Corp. cut sales forecasts, as did Brocade Communication Systems Inc., another key components supplier.

"There was this illusion of immunity, that just because information storage has become the fastest growing portion of corporate spending on technology, that we would be completely immune," said EMC spokesman Mark Frederickson. "Butstorage does seem to be …