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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

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Aug 24 5:00 PM EST

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To: ShamukE who wrote (26042)	2/8/2000 4:21:00 PM
From: Bob Frasca	Read Replies (2) of 29386

It's the GAAP statements that reflect the "real" earnings. While I see your point and I agree with you in principle, I must disagree in practice. The "real" earnings are that which is put in the bank. Ancor did not lose $700,000 on their sales to Sun. That money is in the bank. For bookkeeping purposes, i.e. GAAP, an entry reflecting a "discount" was made in the books. Since this entry is reflecting a discount for the sale of stock that hasn't actually occurred yet (I believe that the warrants aren't actually exercisable until 10 million in sales has been realized) it is not relevant. The bottom line is that it all depends on which side of the ledger you are looking. Isn't it true that, generally speaking, companies typically report pro-forma earnings anyway?

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