S3 (A LONGER TERM PERSPECTIVE) Message Board

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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE)

SIII 0.0001000

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May 12 5:00 PM EST

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To: Synapsid who wrote (7166)	11/3/1997 7:27:00 PM
From: Ken Muller	Read Replies (1) of 14577

Distributors almost aways have "return priviliges" in their contracts with oem suppliers. Also, in a sudden price downturn, the oem will usually authorize a "ship and debit" authorization which will give the distributor a credit against devices already in stock. This happens a lot when you renegotite price contracts quarterly with customers. All of this was probably happening normally, but the accounting guys screwed up the quarterly results. IMO, the results for the year shouldn't change much. Ken

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