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To: Bill Harmond who wrote (7563)	6/12/2001 4:01:03 PM
From: Mark Fowler	Respond to of 57684

Bill i don't care what they say about us.

To: Bill Harmond who wrote (7563)	6/12/2001 5:00:07 PM
From: Mark Fowler	Respond to of 57684

Credit Suisse First Boston Corporation Back to Search Results CREDIT SUISSE FIRST BOSTON CORPORATION Equity Research Americas Biotechnology BUY USD 40.95 LARGE CAP Affymetrix (AFFX) Lowers Financial Guidance. Reducing Price Target to $36. Summary Today, Affymetrix significantly reduced its 2Q01 guidance, citing weaker than expected GeneChip and "do-it-yourself" microarray instrument sales. Slower sales of chips and instruments to large pharmaceutical customers are responsible for approximately 2/3 of this quarter's expected weakness. AFFX believes that 1) certain customers built up inventories around their fiscal year ends, 2) pharmaceutical customers in the midst of project planning are delaying orders, and 3) the mouse chip problems have been compounded as some of these customers remain in wait-and-see mode. This quarter's remaining expected weakness is attributable to continued lack of demand for do-it-yourself spotted array instrumentation. AFFX notes seeing an acceleration in the trend of academic customers wanting prefabricated arrays, which could be beneficial for the company's core product lines. While we are cautious about the next few quarters, we do remain positive regarding the company's long term outlook and the demand for AFFX's microarrays. Our current revenue estimate for 2Q (ex-Perlagen) is $45.0M, down from $60.1M; for FY01 we expect rev. of $207M, representing 2.9% growth over FY00. We expect revenues ex-Perlagen to grow by 30.9% in 2002 and 28.2% in 2003. We are lowering our 2Q-4Q01 EPS estimates to $(0.10), $(0.08) and $(0 .02) from $0.01, $0.07 and $0.15. Our new FY01 EPS estimate is $(0.30), down from $0.14; our new FY02 EPS estimate is $0.23, down from $0.64; and our FY03 EPS estimate is $0.72 from $1.05. Our lowered price target of $36 is based on a multiple of 50X FY03 EPS. Price Target Mkt.Value 52-Week 6/11/011 (12mo.) Div. Yield (MM) Price Range $40.95 $36 NA None $2,330 $103-$23 Annual Prev. Abs. Rel. EPS EPS P/E P/E 12/02E $0.23 $0.64 186.1X 12/01E $(0.30) $0.14 NA 12/00A $(0.24) NA March June Sept. Dec. FY End 2001E $(0.11)A $($0.10) $(0.08) $(0.02) Dec. 31 2000A $(0.07) $(0.11) $0.00 $(0.06) Total Debt (3/01) $383 mil. Book Value/Share (3/01) $2.41 Debt/Total Capital (3/01) 74% Common Shares 56.9mil. Est. 5-Yr. EPS Growth NM Est. 5-Yr. Div. Growth NM 1On 6/11/01 DJIA closed at 10922.09 and S&P 500 at 1254.39 Affymetrix, a genomics company, manufactures tools (DNA microarrays) that enable the large-scale analysis of the human genome. Affymetrix's novel products are used widely throughout the pharmaceutical and biotechnology industries, and it currently dominates the DNA microarray market. N.B.: CREDIT SUISSE FIRST BOSTON CORPORATION may have, within the last three years, served as a manager or co-manager of a public offering of securities for or makes a primary market in issues of any or all of the companies mentioned. CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION CREDIT SUISSE FIRST BOSTON CORPORATION Copyright © CREDIT SUISSE FIRST BOSTON, and its subsidiaries and affiliates, 2001. All rights reserved. CSFB may, to the extent permitted by law, participate or invest in financing transactions with the issuer(s) of the securities referred to in this report, perform services for or solicit business from such issuers, and/or have a position or effect transactions in the securities or options thereon. In addition, it may make markets in the securities mentioned in the material presented in this report. PLEASE REFER TO TICKER CSFBDISC FOR IMPORTANT LEGAL DISCLOSURES. = = Affymetrix = =AFFX:Buy First Call Corporation, a Thomson Financial company. All rights reserved. 888.558.2500 CSFBDISC Full Disclosure Back to Search Results

To: Bill Harmond who wrote (7563)	6/12/2001 8:57:50 PM
From: Mark Fowler	Read Replies (2) \| Respond to of 57684

Bill if you haven't yet take a look at it his deal not bad at all. LARGE CAP USD 28.81 Peregrine Systems, Inc. (PRGN) Acquires Remedy for $1bn Summary · This morning, Peregrine Systems announced that will acquire RMDY for $1.08 Bn, or apprx. 3x CY01 total revenue. Deal expected to close in August. · RMDY was next largest competitor in IT held desk and IT asset management side, though primary customer strength was for small to mid-size customers. RMDY had apprx 11% mkt share and 10,000 customers (Walmart, Citigroup, Cargill). Combined with PRGN's high-end focus and mkt share of 25%, the combined company will have a 36% mkt share. · Deal structure: $270 mm in cash and 28 mm shares of PRGN. To close late Aug/early September. Both PRGN and RMDY had $200mm+ in cash; combined co will have "in excess of $150 mm" left. Will be accretive 8% or $0.06 for 4 qtrs after deal closing; similar revenue impact (8%), but final # will be given after closing. Our FY02 est prior acq are $800M and $0.68. Post acq we expect apprx $950-$1bn and $0.71. · Synergies mentioned: SME customer extension for PRGN. RMDY's ActionRequestSystem for rapid development environment by customers who want extensive customization. This was a development environment, not an out of the box application. RMDY's ASP was $50-100K, or 1/3 the price of PRGN's high-end solution. · This is a large deal for PRGN, which is acquiring a weaker competitor that had struggled but was putting together a salesforce-driven comeback. Financially, deal appears positive due to eps accretion, incremental revenues, and slightly better operating margin. Maintain Buy and $35 DCF based price target. Price Target Mkt. Value 52-Week 6/08/011 (12 Months) Dividend Yield (Millions) Price Range USD 28.81 $35 - - $4,580.8 $38-13 Annual Prev. Abs. Rel. EV/ EBITDA/ EPS EPS P/E P/E EBITDA Share 3/02E $0.68 - - 3/01E 0.53 3/00A 0.32 June September December March FY End 2002E $0.12 $0.13 $0.21 $0.22 Mar. 31 2001E $0.10 $0.12 $0.15 $0.16A 2000A 0.07 0.08 0.08 0.09 Total Debt (3/01) $267 mil. Book Value/Share (3/01) $8.75 Debt/Total Capital (3/01) 16.1% Common Shares 159 mil. Est. 5-Yr EPS Growth 45% Est. 5-Yr. Div. Growth - 1On 6/08/01 DJIA closed at 10977.00 and S&P 500 at 1264.96. San Diego, California-based Peregrine Systems is a leader in e-Business applications and services for infrastructure asset management, employee self-service, complex goods e-procurement and B2B e-commerce enablement (data transformation/integration, catalog management, and marketplace infrastructure management). N.B.: CREDIT SUISSE FIRST BOSTON CORPORATION may have, within the last three years, served as a manager or co-manager of a public offering of securities for or makes a primary market in issues of any or all of the companies mentioned.