PALM - The rebirth of Palm Inc. Message Board

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Technology Stocks : PALM - The rebirth of Palm Inc.

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To: Win-Lose-Draw who wrote (4542)	3/29/2001 4:27:03 PM
From: David E. Taylor	Read Replies (1) of 6784

WLD: PALM lost money last quarter It may look like they did from the consolidated statement of income (not the pro-forma), but that's only because they wrote off $8 million and change for "amortization of goodwill and intangible assets", a euphemism for the piece of their AnyDay and other acquisitions that they can write off this way. Unlike "sales & marketing", "R&D", "G&A", "legal settlements" and "separation costs", which are all real dollar expenses, the $8 million is the funny money part of the companies they bought. The cash they paid for the acquisitions has gone from the balance sheet assets, this is the way they re-capture as much as possible via the tax write off, so it's not a real dollar expense. Deduct that $8 million from expenses and they had a real profit of $7 million, or $0.012/share. Mind you, back out the $11.4 million in "interest income", and the actual business operation was still a loss of $0.008/share. Are we splitting hairs here? David T.

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