Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : ACTM $100 Million Cable Modem Contract with MOT -- Ignore unavailable to you. Want to Upgrade?

To: rich evans who wrote (971)	5/11/1999 10:57:00 AM
From: Rob Preuss	Respond to of 1250

Rich, I agree it seems like a good fit. We're combining 2 weak companies to create one (hopefully) strong company; whether the "hopefully" becomes "really" depends a lot on the execution of management. Now more than ever we'll need to see increasing sales, improving margins, better capacity utilization, etc. I feel the street may be taking a wait and see attitude. I'm sure the analysts are busy evaluating the news and will advise their clients soon. Sometime in the next couple of months, we may well get a nice fresh in-depth report on ACTM from one of these analysts... that could bring in some big longer-term buyers. One point I've not seen raised is that this merger may bring higher visibility into the performance/operations of ACTM. As long as I've been holding ACTM I've lamented the fact that we see no news, not one teeny tidbit of information, between quarterly conference calls. Its my hope that, due to the influence of CMCI (and the generally larger combined company), we'll see more press releases, a better website, real investor-relations, etc. But the bottom-line to the stock price is the top-line and bottom-line performance of the new company. Rob

To: rich evans who wrote (971)	5/11/1999 10:58:00 AM
From: Rob Preuss	Read Replies (1) \| Respond to of 1250

ACT to acquire CMC Industries Monday May 10, 6:08 pm Eastern Time HUDSON, Mass., May 10 (Reuters) - Electronics maker ACT Manufacturing Inc. (ACTM - news) on Monday said it signed a definitive agreement to acquire CMC Industries Inc. (CMCI - news) in a $59.2 million deal based on the stock's closing price. The combined company would become the seventh largest publicly-traded electronics contract manufacturer. Revenues of the combined companies for the past 12 months would have been approximately $582 million. The deal, subject to shareholder approval and other regulatory and closing conditions, is expected to boost ACT's profit in calendar 2000 and will be accounted for as a pooling of interests. CMC shareholders would receive half an ACT share for each CMC share. On Monday, CMC closed at 7 and ACT closed at 15-3/8. Santa Clara, Calif.-based CMC on Monday said it expects to report a loss of between 6 cents and 8 cents per share for the third quarter ended April 30. It expects revenues as low as $57 million to $60 million due primarily to delays in the start up of new programs. A year ago, CMC reported a profit of 8 cents per share on revenues of $58.6 million. ''This merger addresses many of our strategic business development objectives, provides a significant opportunity to increase value to our shareholders and strengthens our ability to bring high quality, value-added contract manufacturing services to our existing and future customers on a global scale,'' ACT chairman and chief executive officer John Pino said in a prepared statement. ''CMC brings a West Coast presence with its Santa Clara, Calif., facility and provides low cost manufacturing alternatives in both its Corinth, Mississippi and Hermosillo, Mexico operations,'' Pino said. ''We have no overlapping customers with CMC so the immediate diversification of our customer bases will be significant.''