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Technology Stocks : Symmetricom Inc.
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From: Arthur Tang4/17/2007 6:54:38 AM
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Symmetricom just reported actual subcontracted cost overran the accrued estimate in the previous two quarters.

If payment is made in this last quarter, the cost overrun will reduce the profit in this quarter. If profit is reduced in the previous two quarters, then this quarter should have better results unaudited anyway.

So, it will be all in a wash; when the last quarter belt tightening audited results for the whole year, will still be good. Belt tightening is always important in the last quarter of the year. R&D expenses should be capitalized, when the company is expanding its products; amortized over the product cycles.
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