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Technology Stocks : Adaptec (ADPT) -- Ignore unavailable to you. Want to Upgrade?

To: Capitalizer who wrote (1341)	3/24/1998 4:39:00 PM
From: jgercke	Respond to of 5944

An alternative perspective would be that Adaptec is taking advantage of the turmoil in the sector to pick up complementary businesses at a song. Don't know anything particular about this deal. JG

To: Capitalizer who wrote (1341)	3/24/1998 4:44:00 PM
From: MetalTrader	Read Replies (2) \| Respond to of 5944

<<My impression is that ADPT is scrambling to maintain total sales as their core market falls apart>>. So do you think that's good or bad? MT

To: Capitalizer who wrote (1341)	3/24/1998 4:48:00 PM
From: Mark	Respond to of 5944

My impression is that ADPT is scrambling to maintain total sales as their core market falls apart. Jeremy, I would be the first to concede that my expertise in data conversion is not current, but I do know first-hand that Analog Devices have (had ?) some amazing technologies in their time. This sounds to me like the technology required to process the analog signals coming from the "heads" of a disk drive. In other words, ADPT are buying the technology that would allow them to migrate from the drive interface towards the medium........ i.e. move towards sourcing 100% of the data path electronics ? This would very much be an addition to their core competancy. Perhaps someone who is more familiar with HDD technology will be able to advise ? This hardly sounds like ADI are "giving it away" - perhaps this is also encouraging. Mark

To: Capitalizer who wrote (1341)	3/24/1998 5:08:00 PM
From: David Lawrence	Respond to of 5944

Full article NORWOOD, Mass., and MILPITAS, Calif., March 24 /PRNewswire/ -- Analog Devices, Inc. (NYSE:ADI) and Adaptec, Inc. (NASDAQ:ADPT) today announced that Analog Devices will sell its read channel ASIC technology to Adaptec. The agreement calls for an initial cash payment of $34 million, to be followed by subsequent payments totaling $6 million for research and development services during a transition period, and up to $20 million in royalties based on sales by Adaptec of products incorporating the acquired ADI technology. Grant Saviers, Chairman, CEO and President of Adaptec, said, "This purchase provides a strong foundation for our future. Mass information storage is becoming an increasingly important element in today's information technology strategies. Acquisition of ADI's top-quality, mixed-signal, read channel technology will sustain Adaptec's leadership position as the industry moves to integrate more ASICs yielding smaller, higher performance storage devices." Jerald G. Fishman, President and Chief Executive Officer of Analog Devices, said, "Adaptec's offer to buy our read channel technology is a strong endorsement of ADI's engineering excellence. It also fits in with our strategic decision to concentrate on other areas of our business, specifically analog ICs and DSP products. As a result of this agreement, ADI is rewarded for its technical innovation in this area and Adaptec is in a better position to sustain its technical leadership in the mass storage arena." Adaptec will account for this acquisition under the purchase method of accounting. Adaptec will evaluate the allocation of the purchase price to the assets acquired, which may include in-process technology that will be written off, and goodwill, which will be amortized over the benefit period.