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.

Strategies & Market Trends : The New Economy and its Winners -- Ignore unavailable to you. Want to Upgrade?

To: Bill Harmond who wrote (10593)	2/21/2002 12:36:41 PM
From: Wizard	Read Replies (2) \| Respond to of 57684

I haven't followed it that closely. My back of the envelope analysis is the following: ONI is getting 24% of the newco If we take March Revs and ballpark gross margins ONI = $40mm @ 37% GM = ~$15mm Gross Profit CIEN = $100mm @ 40% GM = ~$40mm Gross Profit ONI Gross Profit Contribution = ~27% CIEN Gross Profit Contribution = ~73% This is dirty analysis but that is all M&A bankers do anyway so the % of newco looks ok to me... We won't know what went on in the boardroom but I agree, the timing of the announcements is a little strange. For all the talk about the metro space, it isn't big enough for big players to grow yet there are no customers building core so it becomes a slugfest. Too many players going after a sub-$1b market.