Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: FastC6 who wrote (2407)	7/7/2000 11:24:15 AM
From: RobertSheldon	Respond to of 2702

Delete.

To: FastC6 who wrote (2407)	7/7/2000 11:24:47 AM
From: RobertSheldon	Read Replies (1) \| Respond to of 2702

..................................... "concede victory to the shorts" No one wins in this sort of a situation. I have always considered it peculiar that anyone should delight in the loss of others. In any event we still do not know what the final report says, although admittedly things look a bit rank at this point. Good luck to you in your endeavors (soundfs like you are leaving). Hopefully should an event similar to this occur to you (and it proves to be true) you will not experience anything remotely close to the devastation that I'm sure many at the company and elsewhere are feeling.

To: FastC6 who wrote (2407)	7/7/2000 12:00:53 PM
From: akmike	Read Replies (1) \| Respond to of 2702

It would appear that shorts will "win" at this time. It is not yet apparent what the extent of the problem is and the impact on long-term holders. Accounting issues are especially troublesome as they bring along an abiding lack of credibility. This is exacerbated by the inability on management's part to meaningfully comment until the review is completed. None of this is a happy circumstance for shareholders as there will be no "informed" buyers for awhile and some justification for those with shorter horizons or otherwise risk-averse holders to be sellers. While Haugen, Springer depart under a cloud which envelops them and management at this point, no one should doubt that there departure is a positive for the company long-term. The next positive step should be the hiring of a competent, credible CFO and allowing him full reign to get to the bottom of the issues and report to the BOD and the shareholders a true statement of financial condition. While I will admit that questions have been raised of a serious nature which demand answers, I have no information at this point which causes me to question the viability of my investment or even allow me to get my arms around the scope of the problem. A perusal of the latest audited balance sheet shows an inventory position which may be subject to a writedown of a couple million at most (unlikely IMO) and the only other asset accounts that could be overstated would be adjustments to Depr. and Amort. which are non-cash in nature. There is certainly nothing apparent which would seem to potentially threaten the ongoing viability of the business. Timing issues of revenue are important in the sense that the investment community needs to be able to rely on the quarterly numbers to gage the trend of the business, but are a big difference in scope compared to the outright fraud perpetrated at Cendant's division where huge amounts of earnings were permanently overstated. The allusion to the lack of cooperation from the former controller and the potential for illegal acts were probably connected, however, the entire management team and board are suspect until the investigation is completed and the results shared. At any rate, it is liable to be a long time until Mid-August, both for VARL management and shareholders. While there will be much to do before full accounting credibility can be restored management should expedite an early reporting of the revenues for Q2 to at least give a direction as to the current state of the business.