SDL, Inc. [Nasdaq: SDLI] Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : SDL, Inc. [Nasdaq: SDLI]

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Wyätt Gwyön who wrote (3114)	10/24/2000 6:18:54 PM
From: DukeCrow	Read Replies (1) of 3951

I dunno, dividing 45 by 3.8 gives 11.8 cents, but we know the merger is supposed to be accretive. For the September quarter, JDSU is supposed to make $0.16/share. After SDLI's shares get converted to JDSU shares, those shares will have $0.12/share (rounded up) earnings for that quarter. Based on that, JDSU's acquisition of SDLI is dilutive at the present. So in order for it to become accretive, SDLI will need to grow faster than JDSU (which we already know), and operational synergies will need to be realized. I bet a lot of the accretion will be due to accounting tricks. JDSU will write-off a bunch of in-process R&D which will, in effect, make a lot of expenses disappear which really should not because the money has already been spent. The acquisition will appear to be accretive even though it really won't be until at least Q2 CY01 (based on current growth rates). This is all IMHO. Ali

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next