ATCO -- Breakthrough in Sound Reproduction Message Board

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Technology Stocks : ATCO -- Breakthrough in Sound Reproduction

ATCO 15.48

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Mar 28 5:00 PM EST

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To: SunAge who started this subject	9/3/2003 11:52:08 AM
From: Savant	of 2062

Ah Gah-ron-tee it! warrantyweek.com No Claims to Report Keep in mind that twelve companies reported spending exactly $0 on warranty claims during the quarter. They are American Technology Corp.; Energy Conversion Devices Inc.; Interwave Communications International Ltd.; Key Components LLC; Loral Space & Communications Ltd.; Microsoft Corp.; Proxim Corp.; SBE Inc.; SureBeam Corp.; Tektronix Inc.; Turnstone Systems Inc.; and Vyyo Inc. These 12 companies can celebrate their good fortune at having no claims. However, their inclusion in the above calculation significantly inflates the weighted average, because they reported warranty reserves but no claims. However, they had to be taken out of the list while calculating the individual company-by-company reserve-to-claims ratios so as not to divide by zero. Because these companies spent nothing on warranty, their spending capacity in warranty-months is infinite and unlimited since no matter what amount they have in their warranty reserve fund, it will last them an indefinite number of months. No doubt, in future quarters some of these companies will pay warranty claims, and others will add to their reserve funds despite an absence of claims. But if they never experience warranty claims, then the $55.8 million in their combined reserve funds will eventually find its way into net income through downward changes in estimates. Best, Savant

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