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Technology Stocks : Cadence Design Systems

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To: Ian@SI who wrote (569)10/19/1999 11:46:00 PM
From: Carl R.  Read Replies (1) of 668
 
OK, I see. They had some unusual items related to the acquisition of ORCAD. It seems that they put the amortization of goodwill after the computation of earnings for the benefit of analysts. I don't recall ever seeing it done this way before in any company I follow. So far as I know, amortization of goodwill is a normal and predictable expense, and would be includable in the analysts estimates. This amounts to about $.07, so it is significant.

Have you ever seen goodwill excluded from earnings for purposes of comparison before?

I presume you have gathered from my posts that I don't trust management of this company at all. I have no position at this time, though I have been long in the recent past, so it doesn't matter to me, but something seems fishy here.

Carl
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