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Technology Stocks : Adaptec (ADPT)

ADPT 15.44

+0.1%

Dec 12 9:30 AM EST

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To: Cary Salsberg who wrote (1092)	2/23/1998 9:09:00 PM
From: Maverick	of 5944

Post-deal tidbits take a sizable bite out of Adaptec's stock price Feb. 23, 1998 BY ADAM LASHINSKY Mercury News Staff Writer SAVVY investors agree that reading the fine print is crucial. Even more important -- but less feasible for the investing masses -- is listening to the conference call with analysts, which is where the real action happens. The difference between the written and spoken word goes a long way toward explaining why the stock of Adaptec Inc. (Nasdaq, ADPT) plunged Friday, although the company had unveiled a blockbuster acquisition Thursday at a ''fire sale'' price. Investors read in news reports and Adaptec's news release that the Milpitas-based company is picking up Symbios Inc. from its distressed South Korean owner, Hyundai Electronics America, for a relative song: $765 million in cash plus $10 million assumed liabilities. That's comparatively puny because a ''multiple'' of about 1.2 times Symbios' $620 million in current-year sales is small for acquiring a high-tech company. And Symbios will add immediately to Adaptec's earnings. All true, but snippets from the post-announcement conference call and other tidbits explain why Adaptec's stock fell 9 percent to $23.31 Friday in heavier-than-usual trading. In the call, Chief Financial Officer Paul G. Hansen dropped a bomblet unrelated to the acquisition. He alerted analysts that revenues from the company's semiconductor business would be about $10 million less than previously expected. And the company's earlier guess was $10 million below the product line's revenue for the fiscal third quarter ended Dec. 31.

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