Don't let CPQ steal your shares of MNPI!
MNPI's internal projections are for eps of $1.50 a share for this coming fiscal year. Below are their own projections from today's SEC filing for the tender offer. The MNPI board is recommending that you tender your shares for a P/E of 11 based on their own best estimates. Can you tell me which Remote Access Server companies sell at a P/E of 11? You may have appraisal rights with respect to your shares. You may want to enforce these rights in
order to make certain that you recieve adequate compensation for your shares. Based upon the forward P/E ratios of US Robotics, Ascend, and similar companies, a proper P/E valuation would most likely be in the range of 20X-30X, yielding a equitable share price of $30 to $45. Based on sales of other Remote Access firms such as US Robotics or Cascade based on the PSR ratio, a similar valuation would be achieved. According to MNPI's own
internal projections CPQ is paying only 1 times projected revenues. The acceptable methods of valuing a company include valuation based upon P/E ratio, discounted Cash Flow. Return On Investment, Price to Sales, Comparable Valuation, Historical valuation, by any of these measures, MNPI is grossly undervalued at $16.25 a share. I urge all holders of MNPI to carefully review the tender documents and consider taking actions to maximize the value that they receive for their shares. You may wish to consult a competent attorney to advise you regarding your rights.
< Microcom, Inc.
PROJECTED FINANCIAL INFORMATION
Fiscal year ending March 31, 1998
(in thousands, except per Share amounts)
----------------------------------------
Revenues........................... $274,835
Cost of goods sold................. 171,929
Operating expenses................. 68,496
Income from operations before
income taxes.................... 34,410
Net income......................... 25,807
Net income per share............... 1.50
The foregoing projections were not prepared with a view to
public disclosure or compliance with published guidelines of the Commission
or the guidelines established by the American Institute of Certified Public
Accountants regarding projections, and are included in this Offer to
Purchase only because they were provided to Parent. Neither Parent,
Purchaser nor the Company, nor any of their financial advisors nor the
Dealer Manager assumes any responsibility for the accuracy of these
projections. While presented with numerical specificity, these projections
are based upon a variety of assumptions relating to the businesses of the
Company which may not be realized and are subject to significant
uncertainties and contingencies, many of which are beyond the control of
the Company and many of which are described in more detail in "Risk
Factors" under Item 1, Business of the Company 10-K. There can be no
assurance that the projections will be realized, and actual results may
vary materially from those shown.
According to the Company, the revenue projections were based
principally on detailed forecasts for products presented by certain of its
major OEM customers, as well as its own estimates for new OEM customers and for
products sold through distribution. Expense forecasts were based partially on
historical experience as well as estimates based on sales forecasts and
attainment of certain manufacturing efficiencies. The projections were
prepared on a stand-alone basis and do not reflect any effect from the Offer
and the Merger.>
DaleVelk@aol.com |
