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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (2250)	3/24/1998 11:36:00 PM
From: AlienTech	Read Replies (2) \| Respond to of 6021

Lots of people have trouble understanding or even basic reading skills.. Shows about the US school system.. SANTA CLARA, Calif, March 24 (Reuters) - Network Associates Inc. said Tuesday it agreed to buy Magic Solutions Inc. in a cash deal valued at about $110 million. The company said the deal, which is expected to close in its second quarter, will establish it as the world's largest provider of internal help desk applications for the Microsoft NT operating environment, and the second largest provider of client/server service desk solutions over all. "It will be a significant charge in the second quarter," Chief Financial Officer Probhet Goyal said. "It could be pretty significant, over $100 million definitely but (likely) in the $180 million to $190 million range." Chairman and Chief Executive William Larson said the acquisition would be non-dilutive to earnings and would not change the company's guidance to analysts on earnings estimates adding that he is "very comfortable with analysts estimates for earnings. We have no change in guidance for the quarter." Analysts expect the company to report first quarter earnings of $0.54 a share, according to First Call. Paramus, New Jersey-based Magic Solutions pioneered the internal support market with the introduction of the industry's first packaged support application in 1988. Under the terms of the deal, Network Associates will pay to the Magic Solutions' stock and option holders cash of about $110 million. Both boards have approved the merger, which will be accounted for as a pooling of interests. Santa Clara, California-based Network Associates was formed by the merger of McAfee Associates and Network General.