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Technology Stocks : JDS Uniphase (JDSU) -- Ignore unavailable to you. Want to Upgrade?

To: Jacob Snyder who wrote (21670)	9/19/2001 7:45:00 PM
From: RetiredNow	Read Replies (1) \| Respond to of 24042

Hi Jacob, ignore the goodwill write downs. They are immaterial to the long term success of JDSU. All they do is increase net income over the long term. But who cares? I don't. I focus on cash flows and JDSU isn't doing too bad in that regard.

To: Jacob Snyder who wrote (21670)	9/19/2001 9:24:23 PM
From: BWAC	Respond to of 24042

Jacob, Can I shed some accounting theory on the goodwill writedowns? Backdating them: JDSU was trying, as per their consultation with the SEC, to apply the writedown to the period in which it was actually lost. Matched in relation to the decline in stock price. Really the backdating or current period treatment is irrelevant. It would all end up at the saem net answer anyway. The theory here is that Goodwill on the books should not exceed the value given to JDSU as defined by its market cap. If the stock was still around $10 or $14 Billion market cap, you wouldn't be seeing another writeoff. But since there is $12 Billion of Goodwill and JDSU currently has a market cap of $7 Billion, we will see additional writeoffs to reflect the "market value" of the company. Let me point out that this very answer was explained and set straight forward in the earnings report from a few months ago. JDSU isn't being given any value for its goodwill anyway, so why not just eliminate it from the balance sheet? In essence this is what JDSU is doing, eliminating the Goodwill. Or at the very least reducing it to a value that equates whatever the market cap happens to be in a given quarter. Does this help explain it any? Now the inventory writedowns are a totally different matter.