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Technology Stocks : Deswell Industries (DSWL) -- Ignore unavailable to you. Want to Upgrade?

To: j rector who wrote (1363)	2/27/2000 10:48:00 PM
From: Ron Bower	Read Replies (1) \| Respond to of 1418

j, Minored in Accounting (Industrial Engineering Major) Have been overseeing bookkeepers and preparing financial statements for 28 years. Deswell posts Revenue to A/R when product is delivered to customer. At that time it is removed from inventory and is posted to Cost of Goods Sold (a general category composed of individual production costs). Amount left over ends up in Operating Profit. These is an unaudited report, but I'm sure the CFO has used proper accounting practices. If they did what you suggest, then they would be intentionally understating earnings. It would catch up with them when the Accountants made the year end audit. I am wondering where the additional dilution came from. Stock options usually aren't issued until year end. Wondering if they issued some stock to buy out minority interests in Kwanta. FWIW, Ron