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Technology Stocks : Son of SAN - Storage Networking Technologies -- Ignore unavailable to you. Want to Upgrade?

To: trendmastr who wrote (1278)	5/25/1999 8:40:00 AM
From: George Dawson	Read Replies (1) \| Respond to of 4808

It's Official - BRCD is $19/share, read the details on FreeEdgar: freeedgar.com The other important excerpt: "Morgan Stanley & Co. Incorporated expects to deliver the shares of common stock to purchasers on May 28, 1999." George D.

To: trendmastr who wrote (1278)	5/29/1999 8:02:00 PM
From: J Fieb	Respond to of 4808

Have had MRCY on the FC watch list, but I didn't know they were getting out of the FC biz?? Paine Webber has covered MRCY for about a year, I think. I get their research reviews and this is their info as of 4/20/99: "[MRCY] reported fiscal 3Q99 (March) EPS of $0.31, beating our estimate of $0.27 on better revenues and margins, despite higher-than-expected operating expenses. Both revenues and bookings were at all-time highs, a testament to MRCY's strategy and execution in both the medical and defense businesses. Gross margins were more than 400 basis points better than expected due to the relative outperformance of the government electronics group and lower cost of sales. We raised our 4Q EPS estimate to $0.33 from $0.32 to reflect the short-term margin benefit, but expect gross margins to return to the more normal 64-66% level within the next couple of quarters. Government electronics saw 24% year-over-year growth. Bookings for the defense segment also showed strength, as the company's pipeline of business continued to expand. The medical imaging business grew revenues 44.5% year over year and also finished with record-high bookings. We feel that this part of the business is on the cusp of explosive growth in fiscal 2000, and are forecasting over 70% revenue growth in that time period. MRCY gave further guidance on the proposed sale/spinoff of its SANergy shared storage business unit, which it now hopes to have completed by late summer or early fall. This business is projected to result in a loss of $0.10-0.15 for fiscal 1999. We continue to look for enterprise server companies with high levels of intellectual property and recurring revenues and feel that MRCY has one of the best strategic positions in this group. We raised our fiscal 2000 EPS estimate to $1.40, and we reiterate our Buy rating with a 12-month price target of $34, or 27x our calendar 1999 EPS estimate of $1.28. Risks: The most significant risks to MRCY are in execution of the current business plans, since the company benefits from a high level of visibility to future business." ** They don't even speculate on the consequenses of the partnership with Sarnoff. It seems to me that the digital TV possibilities may make MRCY sexier to investors. Guess they can't compete with the big boys?