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Technology Stocks : Vignette Corporation (VIGN) -- Ignore unavailable to you. Want to Upgrade?

To: Wizard who wrote (386)	5/24/2000 5:00:00 PM
From: Czechsinthemail	Read Replies (2) \| Respond to of 628

Can someone explain the synergy of the VIGN/ONDS match and particularly how does the combined company match up with competitors? I tried running some numbers using the closing market cap of VIGN -- $27.875. If there are currently about 193 million shares of VIGN and you add another 35 million for the outstanding shares of ONDS (this may be too small if you need more shares to cover options). You get a combined market cap around $6.355 billion. The combined trailing 12 month sales for the two companies is $151.9 million. That is a P/S ratio of about 42X. The figures for the most recent quarter show similar Y/Y revenue increases -- +362% for VIGN and +354% for ONDS. The sequential Q/Q figures are higher for ONDS -- 55% vs 35% for VIGN. But my understanding is that VIGN was closer to profitability, which now is expected to be delayed. Clearly, the merger announcement has clobbered VIGN stock. Has it strengthened the company? I'm trying to see how it compares with other B2B companies. Is the merger more likely to enhance the company's growth or slow it due to organization problems following the merger?