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Technology Stocks : CYRIX / NSM -- Ignore unavailable to you. Want to Upgrade?

To: FJB who wrote (23254)	1/26/1998 8:20:00 PM
From: Vic Breck	Read Replies (1) \| Respond to of 33344

National Semiconductor Expands Audio Capability by Purchasing Digital Sound Technology From Gulbransen, Inc. SANTA CLARA, Calif.--National Semiconductor Corporation today announced that it has completed the acquisition of digital audio technology from Gulbransen, Inc., a designer and manufacturer of electronic musical instruments based in San Diego. National also hired six Gulbransen employees involved in the development of digital audio technology. Terms of the transaction were not disclosed but National said it expects to take a one-time charge for the write-off of in-process R&D related to the acquisition amounting to approximately $5.2 million in National's fiscal 1998 third quarter, which ends March 1, 1998. The advanced digital sound technology acquired from Gulbransen will expand National's ability to provide digital audio integrated circuits for system-on-a-chip solutions for the consumer and personal computing markets. This expertise will be merged into National's audio product line within the company's Core Technology Group. National Semiconductor Corporation, a Fortune 500 company, produces system on a chip silicon solutions for the information highway, based on its leadership in analog and mixed signal technologies. National is headquartered in Santa Clara, California, and focuses on the communications, personal systems, and consumer marketplace. National has annual sales of approximately $2.5 billion and 13,000 employees worldwide. Additional company and product information is available on the World Wide Web at www.national.com. Gulbransen will continue its musical instrument manufacturing business. The company's highly regarded MIDISystems line and the Gulbransen Digital Hymnal remain defining, state-of-the-art music products. Additional information regarding Gulbransen can be found at www.gulbransen. CONTACT: National Semiconductor Bill Callahan, 408/721-2871 (PR) bill.callahan@nsc.com or Jim Foltz, 408/721-5693 (financial) invest.group@nsc.com "Copyright(c) 1998, Business Wire" "Provided by Dow Jones & Company, Inc."

To: FJB who wrote (23254)	1/26/1998 10:50:00 PM
From: Craig Freeman	Read Replies (1) \| Respond to of 33344

Robert, my first take on CPQ buying digital was that they realized that the company would die trying to sell PCs at ever-lower prices. I can almost hear someone at a board meeting saying "pretty soon there's going to be more money in service and support than in selling boxes ... let's buy us a service company". After selling off the alpha, DEC became a prize to CPQ. They have experience in mailorder marketing (albeit with so-so results), have an established direct sales force, and a HUGE service organization. They are also recognized as one of "the big 3" (IBM/HP/DEC) ... something CPQ was never invoited to join. Now they have Tandem for the high-end, DEC for the middle-to-high, and the low end sewed up. Plus, CPQ can service it all at a profit. Although the purchase was pricey and bodes poorly on CPQ's implied P/E, my guess is that it will turn CPQ into a powerhouse. The loser in all this was IBM, who finally has a real competitor. And when everyone wakes up, DELL will be added to the loser list. In the end, more PCs will be sold to corps at profitable prices. CPQ will need more Intel/CYRX/AMD CPUs and more NSM analog/bus/etc. chips. All at the expense of the reseller network that built CPQ to what it is today. Gosh am I glad that I stopped reselling hardware in 1993 and also bought a few CPQ shares two splits ago. And even happier that I don't work at DEC -- because a chunk of their management folk may soon find themselves updating their resumes. Craig