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Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play

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To: Grommit who wrote (244)11/2/1998 8:00:00 PM
From: Dan Spillane  Read Replies (1) of 522
 
Tax information from VISIO CORPORATION, FORM 10-K, for the fiscal year ended September 30, 1997...

INCOME TAXES
(lower rate for 1997) "...primarily due to ... income taxed in other jurisdictions at rates lower than the U.S. rate"

Translation:
This company maintains foreign operations (and will continue to for the forseeable future); this means income generated internationally benefits from a lower tax rate.

With this information, I stand by my statement concerning "low Visio tax rates for the forseeable future." I might also expect the macro factors I described previously to lead to a lower U.S. base rate much further out.

In addition, from other financial notes I have determined that the company has utilized NOL carryforwards in the past per acquisitions, so my comment about tax planning relative to acquired companies is also on the mark.
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