PERL (Perle Systems) -networking products for eBusiness Message Board

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Technology Stocks : PERL (Perle Systems) -networking products for eBusiness

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To: davedb who wrote (138)	12/16/1999 9:18:00 PM
From: Mark L.	Read Replies (2) of 176

Question, not necessarily for you, but for anyone: I am trying to understand what the line on the Cash Flow Statement is, which is labeled Net change in non-cash working capital balances related to operations. What are those non-cash working capital balances? Typically working capital balances would be reserves that had been set aside in previous years and are now being reduced--by flowing them through the income line. In PERL's case the number is enormous--almost 3 million dollars, just about three times the pre-tax profits. I'm not saying that PERL is doing this; I'm just saying that I can't figure out what they're doing (especially since the balances are labeled "non-cash"). Maybe it's a reduction in Accounts Payable, but I would've expected this on its own line. The reason this is important is that, if they are flowing money out of reserves into the income line, then they had no real profit for the last two quarters; it was all phony baloney. And that's the reason they had negative operating cash flow. Anyone care to straighten me out? Thanks in advance.

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