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Technology Stocks : CyberGuard Corp. (CYBG) -- Ignore unavailable to you. Want to Upgrade?

To: Terry Menia who wrote (1271)	2/24/1998 2:42:00 AM
From: Terry Menia	Read Replies (1) \| Respond to of 2616

After all of 10 min of analysis I say SDTI + CYBG. Firewalls/RSA encryption/TradeWave CA/other. Comments?

To: Terry Menia who wrote (1271)	2/24/1998 9:30:00 AM
From: LarryG	Respond to of 2616

Terry- Based on the article you posted, maybe SCUR would be interested in CYBG. We have Certificate Authority and the technology that business & government would be looking for. Any thoughts? Larry G

To: Terry Menia who wrote (1271)	2/26/1998 1:43:00 PM
From: securityguru	Read Replies (2) \| Respond to of 2616

In terms of acquisition candidates, here's the way I see it. CYBG: smaller, easier to swallow, cheaper given their smaller revenues (attractive acq. candidates are going at 10 times revenues), and they have Tradewave, which is interesting. On the negative side, still hardware in their revenues (that will get discounted in a valuation), no real NT firewall position (Checkpoint and Raptor whin because of NT), and smallish channel. SCUR: on the positive side they have firewall technology and some pretty good two factor authentication (a la SDTI and Axent). They are larger in terms of revenues so they would give more mass to the acquirer. On the negative side their firewalls are "ugly" technology, they have not been profitable and would require a lot of hacking to improve the financial model. Furthermore, SCUR's management team would probably prove difficult to deal with in any negotations (lots of egos). I think CYBG is a more attractive candidate. It is going to be an interesting couple of months. I think everyone is in play or potentially in play.