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Technology Stocks : PairGain Technologies -- Ignore unavailable to you. Want to Upgrade?

To: Jim Ray who wrote (26659)	10/23/1998 9:00:00 PM
From: Gary Korn	Read Replies (2) \| Respond to of 36349

If Pair buys back shares,does it reduce the size of the float? i.e. Does the shares outstanding go down? If PAIR buys back all 7MM shares, the shares outstanding will decline by 7MM (the 7MM become authorized but unissued treasury shares). At the same time, however, the issuance of employee stock options will (according to the PAIR conference call) increase the number of shares outstanding by about 1MM per quarter in 1999. Net/net then, you get a reduction of 7MM shares (if all 7MM are repurchased) offset by an increase of 4MM for the 1999 FY, for a total decline of 3MM shares. Gary Korn