FORE's in a much better cash position than Xylan, which probably needed to be acquired more than FORE. I think Xylan's products were in their cash cow periods and they didn't have the marketing leverage to go to the next level. FORE's still the leader in ATM technology and vision as far as I'm concerned, they just need to transition their products to be more appealing to the carriers, which I believe they are doing. This will introduce them to the cash flows that have alluded them.
Ultimately, the takeout price on FORE is based on supply and demand and right now there are alot of companies that need digital transmission equipment and not too many left that can deliver voice, data, video, etc. all on the same connection. They can't afford not to bid on FORE if it was indeed for sale! Video on demand, live conferencing, digital broadcats, distance learning are all about to see major investments after the Y2k fiasco is over. |
