david.k.harris at siemens
Jan 27, 2006, 5:22 PM
Post #1 of 1
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Avocent acquires Cyclades...
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This week is also a big Sales meeting for Cyclades, so that's one
reason
that folks may not have heard from their Cyclades contacts about this
deal.
I listened to the streaming audio from the conference call today, and
the
Analysts asking questions seemed to know about the financial issues, but
console services sort of eluded them. They are taking the word of the
Avocent folks, who were being careful to NOT say anything that might
be held against them later. (This is understandable...)
One thing that caught my attention was some write-downs of costs
related
to R&D costs for in-progress products. (So, there seem to be some
Cyclades
projects/products 'in the oven', which should continue baking until they
are
ready, versus being scrapped. At least, that's what I read into this
news.)
Avocent picked up Equinox, but hardware didn't help much. Cyclades has
been selling many more CSs in the market, so this seems to be how you
buy more market share. The call also points out the positive aspects,
where the two companies compliment each other...on the surface, this
all looks well and good. Only time will tell how this will all shake
out.
Cross your fingers,
-Zonker-
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