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Technology Stocks : FORE Inc.
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To: Paul W who wrote (9071)8/26/1998 9:58:00 PM
From: jach  Read Replies (1) of 12559
 
from news release <Fore, which had long been considered a takeover target by larger networking companies and telecommunications equipment companies, said Tuesday it would buy Berkeley Networks to add equipment that speeds connections between computers using Microsoft Corp.'s NT operating system.

''Berkeley doesn't have any revenue and they've just started to ship their first product,'' said Martin Pyykkonen, networking analyst at CIBC Oppenheimer, who rates Fore a ''hold.''

''Will the market really buy this product? Part of the message here is even if a start-up has great technology, it's hard to build up a sales force,'' he said.

Pyykkonen said he expected Berkeley to add about $60 million in revenue and 4 cents a share to earnings in Fore's next fiscal year ending in March 2000.>

Target is pretty much in-line although at the low side. Also, FORE was being very conservative in saying that it won't contribute until fiscal 99, in reality it will contribute much earlier as this is a very large mkt segment that is growing rapidly. The Internet is doubling in capcity every three months.
FORE today at around 19$ is a tremendous bargain. Takeover should be even more attractive now considering the mkt value of less than 2B amd having Windows NT based ethernet switch mkt segment in addition.
Stratacom was paid 4B and at that time revenue for STRM was a little more than half of what FORE revenue is today.
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