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

To: Madharry who wrote (2421)	7/9/2000 2:30:27 PM
From: akmike	Respond to of 2702

You are probably correct that Haugen Springer's pr was reviewed (if not inspired) by counsel. Whether it was their counsel or counsel for their insurance carrier, the motivation was likely to begin laying a foundation for a case of fraud which is about the only thing that would exculpate them from eventual liability for this mess. If the real issues are revenue timing and expense/capitalization then Haugen et al will have a high degree of difficulty avoiding some serious liability for damages from restatement IMO. Who would have ultimate responsibility for the treatment of ISO certification expenses once they reached the level which caused a footnote to the audit? I seriously doubt that trading will be suspended for much longer. It appears that VARL's counsel have muzzled them and that the NASDAQ is insisting on some statement from the company which should be forthcoming ASAP. Sooner or later, David Sherman is going to have to look his counsel in the eyes and let him know who is running the company. Of more substance than when trading resumes, what exactly are you fearing rather than some "statement that turns out to be benign"? For all my digging I am unable to ascertain how the pending adjustments can have much impact on the company's ability to produce revenue going forward. There simply don't seem to be asset accounts that would be written down in a manner that would impair the company. If all the ISO expenditures are expensed rather than capitalized then prior earnings are reduced, future earnings are increased and cash remains the same. The departure of Haugen is the first step toward restoring credibility and the hiring of a CFO should be a continuation of that process. KPMG will hopefully remain as the auditor after the investigation is completed.