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Technology Stocks : Cabletron Systems (CS: NYSE) -- Ignore unavailable to you. Want to Upgrade?

To: Sowbug who wrote (2809)	1/14/1998 4:35:00 PM
From: gbh	Read Replies (4) \| Respond to of 8358

Accreditive? This is an R&D company with essentially no revenue. Companies must pay (overpay?) to play Gigabit Ethernet.

To: Sowbug who wrote (2809)	1/14/1998 6:18:00 PM
From: David Harker	Read Replies (2) \| Respond to of 8358

>. . . unless the street like the deal. > >Yeah, I'm just hoping some respected analyst issues a report >tonight with the word "accretive" in it. I did some research on this deal, having bought some CS today. At least one analyst suggested this deal last month... from: news.com:80/News/Item/0,4,17690,00.html Here are several relevant paragraphs: ------------------------------ Cabletron, Cisco eye Yago By Ben Heskett December 30, 1997, 12:05 p.m. PT The developer of high-end networking devices that combine switching and routing functions is a hot property, according to sources, with internetworking giants Cabletron Systems (CS) and Cisco Systems (CSCO) rumored to be interested in acquiring the firm to augment their existing technology lineups. Cabletron already has made an investment in Yago Systems, as reported by CNET's NEWS.COM in September. The size of the investment was not disclosed. (URL for Sept. announce is on next line). news.com "Right now, Cabletron needs a number of things," said Fred McClimans, CEO of market watcher Current Analysis. "They need product they can ship today." (URL for Current Analysis is on next line). currentanalysis.com "Owning it only makes logical sense," McClimans noted. "If I were Don Reed, I would buy them yesterday." Cisco may be interested in Yago Systems for two reasons: to flex its muscle as the largest networking firm in the industry and throw a wrench into a competitor's plans, and as a way to offer a high-speed alternative to its routing hardware and as-yet-unreleased Gigabit Ethernet switching technology. "I would not be surprised to see Cisco meddle in this particular deal," McClimans said. A Cabletron spokesman could not immediately be reached for comment. The company has been criticized for not moving quickly to add high-end gigabit-speed switching technology and routing functions to its portfolio of networking gear for corporations. ... Yago Systems has developed two lines of networking equipment--the MSR 800 and 1600--that essentially route individual data packets at switching speeds using customized hardware components called ASICs, an acronym for Application Specific Integrated Circuits. Both will ship in the first half of next year. Details of a third product, a chassis-based system called the MSR 32000 that likely will support a variety of networking technologies, are expected to be released soon. --------------------------------