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Technology Stocks : Broadcom (BRCM)
BRCM 54.670.0%Feb 9 4:00 PM EST

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To: gpowell who wrote (1397)4/26/1999 1:05:00 PM
From: mmeggs   of 6531
 
Minimal dilution:

From CSFB research report
BUY
LARGE CAP
Broadcom Corporation (brcm)

Financial Implications - Long Term Opportunity Offsets Near
Term Dilution
Financially, BRCM is accepting about 2 cent per share, per
quarter in dilution. Epigram has only nominal revenues at
this point and is incurring the expense of over 50 people.
BRCM will issue 4.6 mm shares for Epigram. This transaction,
combined with the earlier acquisition of Maveric (which will
close this quarter), will result in a reduction of our 1999
EPS to $0.70-0.75 from our current $0.80.
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