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 : Applied Micro Circuits Corp (AMCC) -- Ignore unavailable to you. Want to Upgrade?

To: William F. Wager, Jr. who wrote (656)	8/29/2000 1:39:53 PM
From: SJS	Read Replies (2) \| Respond to of 1805

Bill, It was expensive, but looks like no "baggage" at this time, hence back up we go. After all, SOMEONE's got to pay for this!! <G> Here's a CC post from CSFB, who acted as advisor here (kudos for the disclosure, but its required.....) _____________ Applied Micro Circuits (AMCC-$183.81-Cap $24.4B-Restricted) MMC Networks (MMCN-$110-Cap $4.1B-Restricted) Summary of the Conference Call AMCC EPS: FY01E: $0.96; FY02E: $1.35 FYE: Mar MMCN EPS: FY00E: $0.18; FY01E: $0.71 FYE: Dec · AMCC announced its acquisition of MMCN in an all-stock transaction valued at $4.5 B (~$117/share)—the largest communications IC deal in history. · As we have written (see our report dated 8/15/200), MMCN is a leading provider (with 72 design wins to-date) of network processors and switch fabrics and has increasingly been focused on addressing the access and transport areas of the WAN. · AMCC management noted on the conference call that these product lines are complementary to AMCC’s high speed physical layer chips, framer, and mappers that have been largely focused on optical networking applications in the core of the network. · AMCC management cited that MMCN’s concentration of revenues from CSCO (~45% of 2Q00’s sales) and Nortel (~22%) is also complementary to AMCC’s business with CSCO (<10%) and its robust business with Nortel (37%). · AMCC CFO, Bill Bendush, noted that he believed the acquisition would prove to be non-dilutive given the companies’ similar growth prospects and operating models. Our estimates remain unchanged until the deal closes. · CSFB is acting as financial advisor to MMCN in its transaction with AMCC. ___________________________________________________ Steve PS: Chris, excellent analysis, as usual.