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Technology Stocks : SDL, Inc. [Nasdaq: SDLI] -- Ignore unavailable to you. Want to Upgrade?

To: pat mudge who wrote (3401)	10/30/2000 3:14:01 PM
From: djia101362	Read Replies (1) \| Respond to of 3951

This may be overly simplistic but if you take SDLI's 86.5M shares and multiply it by $2.35 EPS, you get earnings for the year of $203M. If you take JDSU's 958M shares and multiply it by $.80 EPS, you get earnings for the year of $766M. Take SDLI's shares times 3.8 which gives you 329M additional JDSU shares for a total of 1.287B shares after the merger. Add JDSU and SDLI earnings for at total of $969M, divide that by 1.287B shares and you get EPS of .75 before merger related costs. This example proves to be dilutive...sure hope I'm missing something here because that was not my understanding when this merger was announced back in July.