Solectron to Buy Smart Modular Technologies; After-Hours Trading Update

Solectron (SLR) unveiled plans to buy Smart Modular Technologies (SMOD) in a deal valued at $2 billion in stock. Solectron said it would issue 23.1 million common shares for the acquisition and anticipates fiscal 2000 earnings to increase 9 cents a share. Smart Modular stockholders will receive 0.51 Solectron shares for each share of Smart Modular they hold.

After the close, Solectron reported fourth-quarter earnings of 33 cents a share, beating both the 22-analyst estimate of 32 cents and the year-ago 23 cents.

After-Hours Markets

10 most active stocks on MarketXT
Name	Price	Change		Session Volume
BMC Software (BMCS)	67	-7/16	-0.64%	1,000
Cisco Software (CSCO)	71	+5/16	+0.44%	650
America Online (AOL)	90 3/4	+5/8	+0.69%	550
Citigroup (C)	43 5/8	+1/4	+0.58%	500
Intel (INTC)	84 1/2	+1/8	+0.15%	500
Oracle (ORCL)	46	+1/4	+0.55%	300
Motorola (MOT)	89 3/8	-1	-1.10%	200
AT&T (T)	45 1/8	0	0%	200
General Electric (GE)	118 1/4	-5/16	-0.25%	200
eBay (EBAY)	148 1/2	+9/16	+0.38%	50

Last Trades on Island ECN

BMCS: 67 7/16 at 4:03 p.m. EDT.
CSCO: 70 11/16 at 5:00 p.m. EDT.
INTC: 84 1/2 at 4:32 p.m. EDT.

MarketXT, formerly Eclipse Trading, offers after-hours trading to retail clients of Morgan Stanley Dean Witter's (MWD) Discover Brokerage and Mellon Bank's (MEL) Dreyfus Brokerage Services. Clients can trade 200 of the most actively traded New York Stock Exchange and Nasdaq Stock Market issues, 6 p.m. to 8 p.m. EDT Monday through Thursday.

Island ECN offers trading, mainly in Nasdaq-listed stocks, from 8 a.m. to 5:15 p.m. EDT.

TheStreet.com updates the most active issues on both MarketXT and Island ECN in Got a Minute? and in the Evening Update. TSC also reports how MarketXT's three most active Nasdaq-listed issues finished the Island ECN session.

10 most active stocks on Island ECN (5:15 p.m. EDT)
Name	Price	Change	Session Volume
Microsoft (MSFT)	94 3/16	+1/4	22,830
Cisco Systems (CSCO)	70 11/16	+1/16	20,960
Yahoo! (YHOO)	160 15/16	+3/16	20,656
Genzyme General (GZMO)	9 5/16	+1/64	17,340
eBay (EBAY)	149	+1 1/8	17,252
Amazon.com (AMZN)	63 3/8	0	16,020
FVC.com (FVCX)	13	+1/16	14,740
Lionbridge Technologies (LIOX)	27 1/8	+13/64	13,138
Net2Phone (NTOP)	56 7/8	-1/16	11,550
Amplidyne (AMPD)	9	+1/16	11,500

-- Eric Gillin

Major Indices INDEX CHANGE % VALUE YR TO DATE Dow 1.90 +0.02% 11,030.33 +20.1% S&P 500 7.53 -0.6% 1344.13 +9.3% Nasdaq 42.29 -1.5% 2844.77 +29.7% Russell 2000 1.54 -0.4% 439.65 +4.2% TSC Internet 14.40 -2.3% 612.38 +50.7% BOND CHANGE PRICE YIELD 30-Year Treasury 8/32 100 31/32 6.055%

In other postclose news (earnings estimates from First Call; earnings reported on a diluted basis unless otherwise specified):

Earnings/revenue reports and previews

Donaldson (DCI) posted fourth-quarter earnings of 39 cents a share, beating the four-analyst estimate of 33 cents and the year-ago 30 cents.

Federal Mogul (FMO) warned investors that it would report third-quarter and 1999 earnings between $1.00 to $1.05 and $4.20 to $4.30 respectively, greatly missing the consensus estimates of $1.25 and $4.73 respectively. The company blamed their earnings numbers on a slow global aftermarket sales mix, productivity problems and start-up costs.

Georgia-Pacific (GP) adjusted its second-quarter operating earnings results for its Timber (TGP) division to 57 cents a share from 53 cents. The company attributed the adjustment to higher-than-reported revenue and income.

Intermet (INMT) warned investors that it would report third-quarter earnings below both the analysts' estimate of 35 cents a share and the year-ago 36 cents.

Mergers, acquisitions and joint ventures

Atlantis Plastics (AGH) said it brought First Union Capital Markets subsidiary Bowles Hollowell Connoron board to strategize alternatives to increase shareholder value. Atlantis said it is considering a possible sale of the company.

KeySpan Energy (KSE) spokesman Robert Mahony said the company is reconsidering its major stake in Houston Exploration because of the premium now being paid for shares of exploration and production companies. In a joint statement, the companies said they would strategize options for Houston Exploration, which include a partial or complete sale of KeySpan's interest in Houston.

Offerings and stock action

Ryder System (R) said it set a share repurchasing program for $200 million worth of common stock.

Miscellany

Abott Labs (ABT) said it was in talks with the Federal Trade Commission regarding its $7.3 billion purchase of Alza (AZA) in relation to the U.S. divesting rights to Alza's prostate cancer treatment Viadur.

Best Buy (BBY) said it will establish a separate e-commerce division to handle the increase in products that it plans to market over the Internet. The subsidiary, called BestBuy.com, will be fully owned by the company and operated by employees who currently work on Best Buy's e-commerce initiatives. Former Peapod (PPOD) president and COO John Walden has been tapped to head the new unit.

EMC (EMC) and Data General (DGN) said the Justice Department has asked for further information relating to EMC's planned acquisition of Data General. In a joint statement, the two companies said the information is needed for the Justice Department's mandatory antitrust review.

Belgian automated speech system maker Lernout & Hauspie Speech (LHSP) said it forged a deal with Yahoo! (YHOO) to translate text into various languages for the Internet company. Yahoo! will use L&H 's interpretations for registration activities and product help pages on Yahoo! Auctions, Yahoo! Finance and Yahoo! Mail.

U.S. prosecutors said that Princeton Economics International chairman Martin Armstrong has been charged with securities fraud for his role in allegedly stealing $1 billion from Japanese investors. The U.S. Securities and Exchange Commission complaint alleges that Armstrong sold "Princeton notes" to Japanese investors to set up trading accounts with the profits held in Republic New York's (RNB) brokerage division Republic New York Securities. Prosecutors said that Princeton hid nearly $500 million in trading losses in 300 Japanese investors' accounts. Officials claim that Princeton, which told investors that their accounts would be individually handled and conservatively invested, combined the accounts, applying money from one to the interest payments on another. Armstrong could serve 10 years in jail and pay a $1 million fine.

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