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Non-Tech : Tulipomania Blowoff Contest: Why and When will it end? -- Ignore unavailable to you. Want to Upgrade?

To: EL KABONG!!! who wrote (3004)	8/8/2000 7:03:52 AM
From: RockyBalboa	Respond to of 3543

This one? I might think some smaller investors are hot on the "affiliated shareholder"... Gadzoox restates losses by 49 percent By Chris Kraeuter, CBS.MarketWatch.com Last Update: 8:59 PM ET Aug 7, 2000 NewsWatch Latest headlines SAN JOSE, Calif. (CBS.MW) -- Gadzoox Networks restated losses Monday evening for the first quarter after an "affiliated shareholder" distributed shares during a holding period. "Certainly anytime you change numbers, it's not good news, but the core operating results remain unchanged," said CFO Chris Munson. Early Monday, Gadzoox (ZOOX: news, msgs) unexpectedly announced it would hold a analysts-only conference call after the market closed. Speculators drove the stock up 2 5/16, or 29 percent, to 10 5/8. Munson would not identify the shareholder, but she did say it was an organization and not a company employee. The distribution prompted the company to change the accounting method it used in its acquisition of SmartSAN Systems from a pooling to a purchase. First quarter losses were adjusted down to 52 cents per share compared with a previously reported loss of 35 cents a share. The loss now includes a one-time charge for research and development costs of $4.9 million, amortization of goodwill of $1.05 million, and deferred compensation costs of $168,000. During the next five years, Gadzoox, a storage area network products company, will amortize $21 million of goodwill. Losses for the first quarter of 1999 were also adjusted to reflect the new accounting treatment. Gadzoox now reports the loss per share as 17 cents compared with 18 cents. "From a numbers standpoint, this is the result," Munson said. "It's not for me to comment on anything past that." ..... cbs.marketwatch.com