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Technology Stocks : Mattson Technology -- Ignore unavailable to you. Want to Upgrade?

To: Ian@SI who wrote (2153)	11/10/1999 9:24:00 PM
From: Ian@SI	Read Replies (1) \| Respond to of 3661

More from the 10Q. Look like a little less depreciation going forward... +++++++++ re the Concept Design acquistion. In the first quarter of 1999, a preacquisition contingency was resolved which reduced the liabilities assumed from Concept by approximately $2.2 million. Under the provisions of Statement of Financial Accounting Standards No. 38, this has been recorded by the Company in the first quarter of 1999 on a prospective basis as an elimination 5 of previously recorded goodwill and a pro-rata reduction of the balance to the acquired developed technology, workforce and property and equipment.

To: Ian@SI who wrote (2153)	11/10/1999 10:44:00 PM
From: Q.	Read Replies (1) \| Respond to of 3661

Yes, Ian, the inventory growth is consistent with a major ramp in the upcycle. You can also see the effect of this in the statement of cash flows, where the ramp is chewing up the cash. Things worked out okay for Mattson in this cycle: they came into the upleg with plenty of cash. The only thing that bugs me right now is the firing of the auditor. This is something that you see often with lousy companies that are engaged in aggressive accounting, and not so often with quality companies. It's not going to cause me to sell, but it does raise a warning flag where there previously wasn't one.