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Technology Stocks : Stratex Networks, Inc. (STXN) -- Ignore unavailable to you. Want to Upgrade?

To: riposte who wrote (1120)	10/11/2000 4:02:19 PM
From: Rob Preuss	Respond to of 1762

Thanks Steve, Please keep us updated about Endwave's IPO. I suppose they'll wait for the current bearish sentiment to subside before they actually do it. Pricing, of course, is always announced only a few hours before any trading begins. I got a call back from Carl Thomson, CFO of STXN, but I wasn't in my office at the moment... so we're presently playing phone-tag and I haven't yet confirmed STXN's investment in Endwave. I guess my imagination (about Endwave having an IPO) isn't too bad! Rob

To: riposte who wrote (1120)	10/11/2000 4:42:55 PM
From: Rob Preuss	Respond to of 1762

Investment in Endwave confirmed! I spoke with Carl Thompson, CFO of STXN, and he confirmed they have taken a "minority" position in Endwave. He wasn't sure whether the number of shares or price had been announced but said it would be in their S1 filing. So I looked up the S1 filing and found this sec.gov which includes the statement: Except where we state otherwise, the information we present in this prospectus: o assumes that the underwriters do not exercise their option to purchase 900,000 additional shares after the closing of this offering; o gives effect to the conversion of all of our 25,881,302 outstanding shares of preferred stock into the same number of shares of common stock upon the closing of this offering at a weighted average conversion price of $9.50 per share; and o excludes an aggregate of 428,572 shares of our common stock we have agreed to issue to DMC Stratex Networks on October 2, 2000 at $14.00 per share pursuant to a binding stock purchase agreement. So that's a cool $6 million investment. The above document also says that, after the Endwave IPO, they'll have 32,543,266 shares outstanding... excluding 4,486,138 shares they may issue upon exercise of options outstanding as of June 30, 2000 (with a weighted average exercise price of $4.79 per share). A few more details are also noted, but my guess is that STXN will own just over one percent of Endwave after their IPO. At the price STXN paid for these shares, I hope the market values Endwave at well over $600 million. Rob PS) I also noticed that the above document refers to them offering 6 million shares at an estimated IPO price of $14/sh. Of course, that price could change (up or down) between now and the IPO... and it could change further after the IPO too!