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Technology Stocks : IPOs: Too many, too fast, to little buyers? -- Ignore unavailable to you. Want to Upgrade?

To: ynot who wrote (33)	7/22/1999 3:32:00 PM
From: Wayners	Respond to of 84

In July 1996, as part of a divestiture by Lucent, Communication Partners,L.P., a limited partnership controlled by the Texas Pacific Group, acquired all of the outstanding shares of common stock of Paradyne (from Lucent). Our business (post divestiture) was created when certain operations of Paradyne (pre divestiture) were either retained by Lucent or assigned to newly created entities (at Paradyne) in connection with the divestiture. The business that remained with the Company (Paradyne) is referred to as the Predecessor Business. The Predecessor Business derived most of its revenues through July 1996 from the sale of narrowband products. The Predecessor Business purchased products and services from preferred suppliers of AT&T and Lucent and incurred intercompany charges for services provided by other AT&T operations. Following the 1996 acquisition (by Communication Partners), we (Paradyne) introduced a series of new products, including many new broadband products, and discontinued sales of certain products, which were transitioned (I assume sold)to Lucent. In addition, we lowered our expenses and restructured our operations. The cost of the restructuring was accounted for as part of the purchase accounting associated with the 1996 acquisition (by Communications Partners from Lucent). We believe the revenues and expenses of the Predecessor Business are not representative of our current business, financial condition or results of operations (because they are transitioning from narrowband products to broadband products). Accordingly, we believe that a period-to-period comparison of operating results prior to 1997 is not meaningful.

To: ynot who wrote (33)	7/22/1999 3:44:00 PM
From: Wayners	Respond to of 84

The S-1 says that the exclusivity agreement applies to certain network products. It doesn't seem to get any more specific than that. PDYN is going to try to lock up more NSPs as customers over the next couple years so that they won't be as dependent on Lucent. The other networking companies will be trying to sell their broadband products as well. Its all about competition. Nobody knows who is going to capture the lions share of this market. I think those with the biggest pockets have the best chance. Those with the best technolgies will get bought out by the bigger fish like CSCO.