Electro Scientific sees Q1 charge
PORTLAND, Ore., June 10 (Reuter) - Electro Scientific Industries Inc (ESIO) said it expects to post a charge of less than $10 million in the next fiscal year's first quarter as part of its acquisition of Dynamotion Corp, a producer of mechanical drilling and routing systems.
Electro Scientific acquired the Santa Ana, Calif., company for about $13 million in stock. The charge, for one-time, in-process research and development, is to be taken in the 1998 fiscal year's first quarter ending August 31.
Under the deal, Electro Scientific acquired all the outstanding capital stock of Dynamotion, about 347,000 shares. A portion of the shares will be restricted from trading for 12 and 18-month periods, it said.
Vinh, the equipment market is down on Merril Lynch ratings cut. I am not sure if the market likes this charge or is reacting to other news. Was good to see ESIO hit new highs, but seems to have resistance.
Like I said before, the newletter Infrastructure is going to profile ESIO this month. It should be out shortly.
Mark |
