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Technology Stocks : Corel Corp.

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To: Leo Mitkievicz who wrote (1802)	9/3/1997 12:02:00 PM
From: A. Hayer	of 9798

Leo, my crude research methods indicate that the spending may be similar to Q2. 1. Number of ads in the PC mags didn't explode in Q3. 2. No new sporting (stadium, bobsled, etc.) sponsorships. 3. Even though the Office for Java "engine stall" was announced recently, the "turbulence" started back in June. The R&D expense was probably contained as a result. Take a look at this site to see what I mean, the Office for Java team started weeding out back in June. sulis.com The announcement that the Java team was being moved to Utah was probably just a cover-up until the official announcement. So if there is no Advertising or R&D surprise, that leaves just SG&A. And I don't think Cowpland creates as much SG&A expense as he does Advertising and R&D. So I say the expenses remain similar to Q2 as a percentage. But then again, my research methods are very crude. ah

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