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Technology Stocks : Newbridge Networks
NN 16.70-0.4%Dec 11 3:59 PM EST

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To: zbyslaw owczarczyk who wrote (11141)5/5/1999 9:11:00 AM
From: WTSherman   of 18016
 
<However the same product sold next quarter will have near 100% margins.
You dod not count cost of production twice.
In Q4 margins will be lower, b/c of that, and higher in the following quarters.<


Z, I sure hope that NN's accounting folks know more about product cost accounting than you do. Your explanation above is accurate as far as cash flow goes. It is totally inaccurate as far as product margin and cost of goods. The materials acquired to produce goods are paid for, but, generally not accounted for until the product is sold(this is what is known as inventory), those materials are still listed as assets until they are sold.
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