Cascade Communications (CSCC) Message Board

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Technology Stocks : Cascade Communications (CSCC)

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To: Uncle Mikey who wrote (3370)	4/3/1997 3:20:00 AM
From: Dee Jay	of 3743

FAR more likely alternative 2 than 1, IMHO. In fact, there is evidence that the discussions had been going on (and off and on again) for over a year. The temporary glitch inorder flow for CSCC simply allowed the loose ends to be tied together and set up a situation where the costs of actualizing the merger will be partially offset by the shifting of revenues into the 1st Q wherein the 2 companies are one. Not an artificial delaying of recognizing the revenues - they actually had the "lumpy" revenue stream which must be inherent when dealing with RBOCs. If that's the case (and another big IF - if the managements get the 2 companies to meld or mesh well enough so that efficiencies aren't unduly postponed) then the 2nd Q after the merger is completed should look very good indeed. Lots of ifs though. Dee Jay

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