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Technology Stocks : Ampex Corp: Digital Storage
AMPX 8.335-2.4%1:21 PM EST

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To: who wrote ()1/22/1997 2:20:00 AM
From: Kevin O'Donnell   of 3256
 
How should I interpret the accumulated deficit?

I'm new to AXC and fairly new to investing in general, but this
is the first stock I've seen with a negative Shareholders Equity.
According to the last 10Q it is due to an accumulated deficit
on the books totalling $457 Million and change.

This seems disturbing in a company whose annual net sales are
on the order of $100 Million and earnings of $14 Mil.

So what does the deficit mean and how should it be interpreted
in valuing the company? After all they aren't the Gov't. :-)
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