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Technology Stocks : Silicon Graphics, Inc. (SGI)
SGI 91.70+1.1%Nov 28 12:45 PM EST

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To: Mathon Dabasir who wrote (3589)11/18/1997 2:47:00 AM
From: rumboman  Read Replies (1) of 14451
 
Re: SGI purchase of Alias:Wavefront.

For the record, Alias had revenues of $55 million in the fiscal year
prior to the merger while Wavefront had revenues of $27.7 million.
Prior to the consumation of the merger, Alias had revenues of
$17.6 million in the first fiscal quarter of '96, an increase of 89% over the prior year. I may be mistaken but these figures tend to
suggest that SGI may not have necessarily overpaid for these
acquisitions; moreover, if one values the cost of these stock-for-stock acquisitions as of November 1997 rather than June 1995, the cost is likely to be significantly less than than the figure cited--I fail to see any reason why the cost cannot be
measured in terms of the present situation rather than that
existing two-and-a-half years ago.
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