Summit Design (SMMT)-Another EPIC? Message Board

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Technology Stocks : Summit Design (SMMT)-Another EPIC?

SMMT 17.04

-1.4%

3:59 PM EST

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To: Just4fun2 who wrote (17)	9/9/1997 8:20:00 AM
From: crysball	of 100

Summit announced thr acqusition of privately held Simulation technologies for 1,980,000 shares, plus $4mil in cash. This is a straight prchase and not a pooling of interests.....so they will take a hit (one time charge) on earnings in the short term. Also announced they are buying back 1,000,000 shares of stock so this will mitigate to some extent the dilution of the acquisition issued shares. Expect a news release today with a fuller analysis of the impact of the acqusition. Since they are buying a privately held company the deal is immediate. Interesting question is whether this will give them sufficient critical mass to survive further industry consolidation. One aspect which doesn't make financial sense is if you divide market cap by number of employeeses it values each employee at well over a $1million?

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