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 : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: jach who wrote (20491)	11/2/1997 6:36:00 PM
From: sepku	Read Replies (1) \| Respond to of 61433

>>>I see, so 40% of market cap, 80% of revenue and what'll be the % of csco earnings this com-combo will get? (I'll guess probably 25% of csco earnings)<<< Wrong. Because CSCO has far more shares outstanding compared to income. For example, compare the 1997 FY eps estimates (Zacks, Media General Financial Services): ASND -- 1.32 COMS -- 2.36 CSCO -- 2.05 As you can see, COMS actually has a higher eps than CSCO for 1997, despite just roughly 60% its revenues during the same period. The combined eps of a hypothetical ASND/COMS would average out to about 1.84, which is 90% of CSCO's eps. Not to mention a combo of ASND/COMS would add up to 60% marketshare of the fastest growing segment of networking: remote-access equipment. A merger of this sort would produce a networking giant that is leaner, and meaner than CSCO. Style Pts.