The New QLogic (ANCR) Message Board

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Technology Stocks : The New QLogic (ANCR)

QLGC 16.07

0.0%

Aug 24 5:00 PM EST

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To: Nine_USA who wrote (27507)	7/17/2000 6:34:18 PM
From: Logain Ablar	Read Replies (1) of 29386

Herb: On the acquisition conference call management indicated they had not factored in any GAAP benefit of realizing the ANCR NOL Carryforward. Any benefit, if realizable, had not been factored into the "dilutive" impact to earnings. The ANCR NOL is what is known as a Separate Return Loss Year NOL. Under certain situations when there is a change in ownership the SLRY NOL can be used but only by the legal entity which created the loss (there are other restrictions on products, etc. but they should not apply in this case). To make this short I'm sure the deal is structured to ensure full utilization but the NOL can only be used by profits generated by ANCR. It can not be used to immediately shelter QLGC profits. There are "ordering" rules in consolidation but I assume to the extent ANCR continues to generate losses those losses current period losses will be used to offset QLGC profits. Lets hope this is a mute point. Tim

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