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

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To: Grommit who wrote (251)11/2/1998 9:36:00 PM
From: Dan Spillane   of 522
 
I'm glad you are now arguing with the 10K rather than me...I also discussed this with someone in the company. The reason for the lower tax rate is clearly stated in the 10K as being due to foreign operations: "primarily due to ... income taxed in other jurisdictions at rates lower than the U.S. rate"; perhaps there are specific tax laws that depend on which foreign jurisdiction(s) you are talking about. In any case, why argue about this?

And you are not entirely following me on the NOLs. Since Visio is cash and stock rich, they may make acquisitions from time to time which benefit them from both the technology and the tax perspective. Yes, NOLs do run out...but if you continue to make smart acquisitions, you may get more and more NOLs. And my understanding is the majority of the tax benefit to Visio is due to income taxed in non-US jurisdictions rather than NOLs.
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