How's a $5 in a year sound?
Westell said it expects to take a one-time charge for in-process research and development and other expenses upon the closing of the merger. The merger is expected to close in the fourth quarter of Westell's fiscal 1998.
A Westell spokesman said the deal is expected to be accretive in fiscal 1999.
Here's what apparently prompted Amati's surrender:
For the fourth quarter ended August 2, 1997, net revenue was $2,012,000, a decrease of 18% from the prior year's fourth quarter sales of $2,451,000. The Company reported a net loss of $6,418,000 or $.33 per share compared to a net loss of $2,196,000 or $.13 per share for the fourth quarter of fiscal year 1996.
If the deal goes through, Westell will end up paying $400M for a company with annual sales barely in excess of $10M. Think about it: if Amati had zero overhead and the $10+M were pure profit, Westell's "investment" would yield a whopping 2.5-3% per annum.
Good luck,
PTB |
