Oclaro, Inc. (Avanex-Bookham) Message Board

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Technology Stocks : Oclaro, Inc. (Avanex-Bookham)

OCLR 8.260

0.0%

Dec 10 4:00 PM EST

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To: Johnny Canuck who wrote (2002)	4/26/2002 11:00:24 AM
From: The Ox	Read Replies (2) of 2293

Hi Harry, No, I haven't had a chance to listen to the call. From the earnings releases, I see NET assets (net of liabilities, inventory, also reduced for questionable "other assets" and intangibles) for the combined AVNX/OPLK in the range of 425-430 mil, and the new company will have about 135 mil shares issued when the merger is complete. (these are approx values). I don't like to use the cash and investments alone without taking out all the fat. This equates to slightly over $3/share of 'value' for the new company. Last quarter the combined companies had about 25 million in operating losses, so if they continue to have a similar burn rate this quarter, their net assets would be reduced to about 400. This would reduce the 'value' down just below $3/share. As for TXCC, I calculate MY net asset value to be about $180 Mil and with 95 mil shares outstanding, the net asset value per share is about $1.90. So I don't agree with your comments that TXCC is trading significantly below it's "value". I hope this helps and I'm happy to discuss a different view on the company's balance sheet, debt or other figures that are being used to determine "value". Michael

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