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

To: Luis Rueda who wrote (26231)	4/24/1998 9:55:00 AM
From: Moominoid	Respond to of 33344

The market doesn't seem too excited. The price is down slightly after starting slightly up... Well actually it's back up again - just wobbling up and down nothing dramatic. David

To: Luis Rueda who wrote (26231)	4/24/1998 11:58:00 AM
From: arya khidayen	Respond to of 33344

The acquisition will be a cash purchase with a total acquisition cost of approximately $122 million, including acquisition expenses. National will expense an estimated $85 to $95 million of this amount for in-process research and development at the close of the transaction, which is expected by the end of the current quarter, ending May 31,1998, subject to regulatory approvals. Does NSM actually have that much cash on hand? how much cash on hand will remain afterwards? At least they aren't printing more shares (dilution) for this one. Or will they be selling convertible bonds to pay for it? Is the $85-90million R&D expense writeoff good or bad? It seems to me that they are acquiring those deductibles along with the technology, thereby effectively reducing the purchase price to $32million?? i.e. they are buying R&D tax credits, yes? Also this all happens this quarter; so, on balance we've got some negative (acquisition, cash expenditures) and some positive (technology, tax credits). comments??