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Technology Stocks : Microdyne (MCDY) -- Ignore unavailable to you. Want to Upgrade?

To: Dave Johnson who wrote (378)	8/6/1998 9:43:00 AM
From: John T. Hardee	Respond to of 414

Microdyne Announces Plans to Acquire Veda Systems The Acquisition Will Build Microdyne's Strength And Expand Market Potential in Communication Technologies ALEXANDRIA, Va., Aug. 6 /PRNewswire/ -- Microdyne Corporation (Nasdaq: MCDY - news) today announced that it has entered into a letter of intent to acquire all of the assets of Veda Systems, a Southern Maryland-based provider of a wide range of software and digital products supporting data acquisition and telemetry processing. The acquisition will be made for cash, and is expected to close by September 30, 1998. The purchase price was not disclosed, but the company said the acquisition is expected to be accretive in fiscal 1999, after an initial purchase accounting adjustment for the quarter during which the acquisition is completed. For its fiscal year ended December 31, 1997, Veda Systems reported revenues of $19.8 million, which represented 58% growth over the prior year, and earnings before interest, taxes, depreciation and amortization (EBITDA) were approximately $4.5 million. ''The acquisition of Veda Systems and our previously announced pending acquisition of the four affiliated signal processing companies should add at least $40 million in revenues to our Microdyne Communication Technologies Inc. (MCTI) subsidiary for fiscal 1999,'' states Michael Jalbert, Microdyne's president and chief executive officer. ''This more than doubles the revenues generated by MCTI in fiscal 1997.'' He adds, ''Our pending acquisitions demonstrate that we're acting upon our strategy of building strong internal growth and targeting complementary acquisitions that will build our critical mass and extend our existing capabilities and reputation into new, related markets.'' Veda Systems employs a workforce of 100. Its primary markets include flight, missile and ground vehicle testing, space launch, and satellite telemetry processing and control. Growing market segments include satellite payload processing and the distribution of remote sensing and imaging data. An operation of Veridian, a 50-year-old information solutions company, Veda Systems' client list includes Lockheed Martin, Boeing, Daimler Benz, Northrop Grumman, Bombardier, Saab and Aerospatiale. The acquisition is subject to the signing of a definitive agreement, completion of due diligence, and approval by Microdyne's and Veridian's board of directors. Headquartered in Alexandria, Virginia, Microdyne Corporation is a diversified technology

To: Dave Johnson who wrote (378)	8/8/1998 4:04:00 PM
From: Albert Mou	Respond to of 414

Dave, See my analysis over WGNR. The fact is simply that MCDY is a cold stock. MCDY announced last quarter earning 14 cents with a bit bad news on one of division. My argument is that division contributed a lot less earning than the other division anyway. Plus, MCDY is going to double revenue for two acquisition it made. All acquisition will be accretive to the future earnings. Therefore, the small bad news in last quarter will be greatly diluted in the future. This stock may not bounce up right away. But if everyone invests on emotion instead of valuation judgement, i close my case.