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To: tinkershaw who wrote (25718)	6/2/2000 12:12:00 PM
From: Mike Buckley	Respond to of 54805

Tinker, Without the $22 million in arbitration revenues this quarter there would clearly not be a Tornado here. You're being too kind not mentioning that I incorrectly stated it as $40 million, having confused annual and quarterly numbers. In the future, please point out those errors more often. If nothing else, it helps provide a basis for content on the curmudgeon thread. :) I am uncertain as to how GMST is recognizing these revenues. Recognized as they arrive and therefore forward stuffing the numbers, or will they restate prior quarters, or just how they are doing it. I assume they are recognizing that income when it is dictated by arbitration. Once the arbitration process dictates the amount owed, it becomes a legitimate recievable and, thus, bookable revenue. But the arbitration process really does make it especially difficult to quantify a tornado. Those vast sums of money ($40 million in the last FY and I think all of it in the last two quarters) hitting the books at one time are for product shipped over a long period of time in the past. And I don't know which portions of the funds should be allocated strictly to product revenue and which should be counted as damages. I'm going to work with the numbers some more to see if I can come up with something substantial we can hang our hat on. Maybe so, maybe not. --Mike Buckley