Two quotes from the summary of the transaction from an analyst friend:
"STII makes modems and components for the MMDS, LMDS, and cable modem markets. NN's acquisition of STII will get them all of the necessary components for a fully featured access switch. They already have DSL, MPEG-2, and compressed voice cards. NN will now own the ARIC (ATM radio interface card) for LMDS applications. They will also develop a cable modem card through the Stanford group. . . ."
"Wall Street does not really understand what NN is building. They are leveraging their unassailable position in ATM core networks in order to capitalize on the massive access opportunities using wireless, cable, fiber, or copper media.. . ."
From Stanford Telecom's website, you can read about their Wireless Broadband Products Group:
stelhq.com
You can also view the slides used in today's webcast:
newbridge.com
The last frame shows a diagram of the products being retained.
As for how the investment community will view the acquisition, I'm certain analysts will fine-tune their numbers, weighing added revenues against increased shaes, and release comments over the next few days.
Strategically, it's a brilliant move and I'm anxious to know how it will impact the competition in terms of NN's having control of products they may need.
That's it for now ---
Pat
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