Margins unaffected/accretive to earnings
That's Pat on the spot for you, has the CC covered. However, a question: if the purchase consideration is $400 million in stock, that equals approximately 3.38 million shares. Now, JDSU is expected to earn, what, approx. $1.10 for FYJune 2000? When KK or Dr. Jozef, or whoever is addressing the point, does the "accretive to earnings" assertion mean accretive at least in proportion to JDSU's EPS or does it mean, simply (and less to wave the flag about), that the acquisition will add to earnings in the aggregate? If the answer is the first, than Epitaxx will have to show at least approx. $3.75 million in net earnings. On a $40 million run rate, I guess that's doable--hard to assess the margins from this limited information. If it's any less than that, then I would call it dilutive, not accretive.
Of course, the more significant story here is on expanding the capabilities of the modules on the receiving end--tell us more Pat.
Best. Steve |
