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Technology Stocks : MessageMedia Inc. (MESG)
MESG 18.65-25.4%May 25 5:00 PM EST

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To: Gutterball who wrote (335)10/14/1999 2:47:00 PM
From: Gutterball  Read Replies (3) of 553
 
In all fairness to those aiming to earn the Venerable title, this Just In from the horse's mouth.

MessageMedia will include both revenue and expenses from Revnet and Decisive only from the date of acquisition. Therefore, it will not report the full three months, but approximately 1 1/2 months of both their revenue and expenses.

MessageMedia will also book the amortization of goodwill from these two acquisitions -- excess of purchase price over book value.

It is important to get this out now. Considering both Revnet and Decisive were privately held, my guess is the amortization of goodwill will be significant. The thing to keep in mind, is that this will be a non-cash charge to earnings. Thus, while earnings per shr could be significantly negative (ie, net loss) but not that negative since there are over 44 million shrs oust, this is something investors will have to look past and stay focused on revenue growth.
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