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Technology Stocks : S1: Doing Business in a Dot Com Depression, -V1 -- Ignore unavailable to you. Want to Upgrade?

To: tuck who wrote (929)	1/18/2001 11:31:34 AM
From: Oeconomicus	Respond to of 1013

Tuck, GAAP earnings don't really tell you much about S1 at this point. Too much amortization makes the losses look huge when they really aren't. That confusion will go away soon as the requirement to amortize goodwill goes away. That should happen sometime this year. Which Q, I don't know. Anyway, without the huge amortization numbers (actually, spinning out V1 should have some impact, I think), earnings and EBITDA will have a more normal relationship - true depreciation is relatively small ($7 million or so per Q) and taxes aren't an issue for a while. Still, EBITDA is the first and most important milestone as it means they are at least partially self funding. When it exceeds their capital requirements for CAPEX and growth in working capital needs, then they are completely self funding. Bob