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Avocent acquires Cyclades...

Harris, David \(SBS US\) david.k.harris@siemens.com
Fri, 27 Jan 2006 17:22:58 -0800 (PST)


  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-