Rambus (RMBS) - Eagle or Penguin Message Board

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Technology Stocks : Rambus (RMBS) - Eagle or Penguin

RMBS 95.45

+1.3%

3:59 PM EST

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To: Dan3 who wrote (55153)	9/25/2000 9:35:06 PM
From: Zeev Hed	Read Replies (1) of 93625

Dan, a CFO that does not take every single expense he is legally entitled to (rather than capitalize it) is not doing his job. If companies could charge to expense Cap-Ex they would, yes it will hit the bottom line first, but that is also a major reduction in taxes they have to pay, and thus from the point of view of cash flow and taxation, you always take what you can and classify as many of the startup costs as expenses rather than capitalize these. As for the progression of depreciable assets, they surely do not account for the $2 B, I think a good chunk of that could be attributed to upgrading to copper and deep UV lithography updates at their existing fabs (25?), a minor part, maybe up to 15% or so to smart reclassification of Cap-Ex to expenses. Their success this year and their losses last year are directly related to their current success in the CPU arena, and the lack of such success and indeed investment in making this year's success possible, respectively. Zeev

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