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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Harry who wrote (11161)	6/29/1999 7:08:00 PM
From: JEFFREY S. FENDER	Read Replies (1) \| Respond to of 14266

Harry I'm glad you took the time but wish you would have sent it to Fred instead. I'm sure what ever her answer will be there is still going to be speculation and interpretation.

To: Harry who wrote (11161)	6/29/1999 7:12:00 PM
From: Harry	Respond to of 14266

From the 10Q... I know, I know. This is probably somewhat hypocritical since I just said I was hoping to end this debate, but here's an excerpt from the 10Q for Q1 FY1999: ----- Discounts, Allowances and Returns; Inventory Management. In general, except for PC titles, our arrangements with our distributors and retailers do not give them the right to return products to us (other than damaged or defective products) or to cancel firm orders. However, we sometimes negotiate accommodations to retailers (and, less often, to distributors) when .... At the time of product shipment, we establish allowances based on estimates of future returns, customer accommodations and doubtful accounts with respect to such products. We base this amount on our historical experience, retailer inventories, the nature of the titles and other factors. For the three months ended March 31, 1998 and March 31, 1999, provisions of $6.2 million and $6.9 million, respectively, were taken against gross sales made during such periods. As of March 31, 1999, our aggregate reserve against accounts receivable for returns, customer accommodations and doubtful accounts was $19.6 million. ------- Based on that, I'd say it sounds like reserves are calculated on estimates, not on how many units sell through by the end of the fiscal quarter. Then again, I'm not an expert at reading 10Q's, so I could be misreading this. Second opinions? Harry PS I'll post Mary Garrett's response as soon as I hear back.