Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: TTOSBT who wrote (141759)	9/9/1999 12:28:00 PM
From: TechMkt	Read Replies (1) \| Respond to of 176388

When will we know if the charge is 5 cents or 7 cents? Fez

To: TTOSBT who wrote (141759)	9/9/1999 12:31:00 PM
From: GVTucker	Read Replies (1) \| Respond to of 176388

On the contrary, TTOSBT, DELL made it very clear that there would be a 5-7 cent charge to earnings when the deal closed. Additionally, management very clearly stated that the deal would not be accretive to earnings for the forseeable future, given that ConvergeNet has no products or revenues right now. Finally, management indeed stated that the deal would be dilutive for a little while because of the new shares plus the amortization of the remainder of the purchase price over 7 years, but that the impact would be minimal, i.e. a penny or so per quarter max.

To: TTOSBT who wrote (141759)	9/9/1999 12:38:00 PM
From: stock bull	Read Replies (2) \| Respond to of 176388

TTOSBT, re:<<I read where it will be a 5-to-7 cents one time charge on future earnings...>> I believe this is a one time write-off of R&D and is a normal part of any such acquisition. It's required by standard accounting practices. Or, so I'm lead to believe. Re:<<That coupled with the fact that the company -however good- has never sold a product!>> Its my understanding that the company is going to announce some products at various trade shows within the next few months. IMO, Dell bought the company at a good point in time. I assume the company hasn't gone into manufacturing yet, so Dell will be able to take the products from engineering directly into Dell's own low cost manufacturing facilities. This type of transition sure cuts down on the headaches. During the period of time that it takes Dell to transition the company and its products into Dell's organization, I'm sure Dell will continue with their current storage strategy. Hopefully, this will be a smooth and seamless integration process. Stock Bull