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Technology Stocks : Cascade Communications (CSCC)

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To: MStonek who wrote (1997)1/29/1997 7:53:00 PM
From: Im-patient   of 3743
 
I'm not sure this posting says...

<Cascade said a one-time charge equal to a "substantial portion" of the purchase price would be taken to pay for bringing Sahara's products to commercial availability, and for other costs associated with the transaction.

A spokeswoman for Cascade said she was unable to give more details of the charge. The acquisition, under purchase accounting rules, will be taken in the first quarter of 1997.>

All I get from this is that SAHARA'S products are not fully developed, either technically or commercially, and that the purchase cost will be reflected in the next earnings report.

Neither fact seems to imply that this purchase is a short-term boost to earnings?

Right?

Are we looking forward to another dip?... Or is this just another way of utilizing an expected super profitable quarter????

Would love to hear some commentary.

Thanks, FRED
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