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Technology Stocks : Novellus -- Ignore unavailable to you. Want to Upgrade?

To: LemurHouse who wrote (3437)	5/29/2003 5:57:52 PM
From: Berk	Read Replies (1) \| Respond to of 3813

Under FASB 13 they can take the lease expense as an operating expense against revenue if the lease qualifies. A synthetic lease is a quasi installment sale. What was the nature of the discussion?

To: LemurHouse who wrote (3437)	5/30/2003 3:08:18 AM
From: Cary Salsberg	Read Replies (1) \| Respond to of 3813

I listened to the update. I like listening to NVLS. They spelled out the SARS order delays, but, obviously, "customer mix" comes into play since they said that an historically small group of customers was still providing the orders. My take was that they don't believe the industry 2H forecasts. There is potential for a large upsurge, but they indicated that 9 months was a reasonable time for customers to ramp up yields before follow on orders would be placed. This limits orders. SARS limits orders and end customer demand limits orders. They still expect a return to "normal" cycle behavior. I suspect that will come later rather than sooner. NVLS says SARS has caused customers to place orders no sooner than required delivery times mandate. I think that if there were no SARS, prudence would demand this behavior.