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To: BWAC who wrote (50049)	12/15/2003 6:36:17 PM
From: DanZ	Read Replies (1) \| Respond to of 53068

BWAC: Here is an explanation using the simplest logic gate that I can think of - a two input OR gate. First, digital logic only has two valid states: high (on) and low (off). A logic high is typically represented as a "1" and a logic low as a "0". The output of a two input OR gate is a logic high when either of its two inputs are high. Let's say that the two inputs are labeled A and B, and the output is C. If A = 1 or B = 1, then C = 1. Only if both A and B are 0 is C = 0. This logic can be modeled by a computer, and the designer can simulate the operation of the circuit by changing the value of the inputs. For example, if the designer sets A = 1 and B = 0, the modeling software would set C = 1 because it knows how the device works. Now consider a circuit where the output of the OR gate described above is connected to the input of another two input OR gate. The inputs of the second OR gate are labeled D and E, and the output is labeled F. Let's say that C, the output of the first OR gate, is connected to input D on the second OR gate. Using the example above, since C = 1 (also D), no matter what input E is, output F would be 1. This is a simple example, and it's easy to see what the output of the circuit would be when you vary the inputs. In a circuit with more complex integrated circuits, and even hundreds of simple gates, it isn't as easy to see what the output output would be when you vary the inputs. The behavior of every electronic device can be modeled, although obviously some devices are much more complex than others. Synopsis's software allows designers to model circuits by connecting models of individual devices together, and to see how their circuit works without actually building the hardware. The company also provide models of many devices that their customers can use to build circuits. The VHDL standard that I mentioned the other day allows people to share models of circuits and devices with other developers. Synopis software has obvious benefits as it allows designers to determine if their circuit works properly before the company commits to production. Let's say that a designer does not have modeling software and has to build the actual circuit to test it. If it doesn't work correctly, the designer would have to troubleshoot the circuit manually to determine why it isn't working, make changes, and then build a new circuit. This can be expensive, not only in terms of labor, but also tooling to build the hardware. Another advantage of Synopsis' simulation software is that it helps one troubleshoot because the output of each node is determined by the software, and the developer can more easily determine why something isn't working as expected. I hope that this explanation helps more than confuses! Here's an interesting twist to holiday sales described in a CBS MarketWatch article today. What's likely to get the most notice this year is the proliferation of gift cards under the tree as more and more retailers tout them. Overall, analysts expect 10 percent of holiday sales to come as plastic cards. While cash does change hands between the purchaser and retailer, gift card sales cannot be tallied as sales receipts until the recipient actually buys something. It makes sense that a company can't realize the sale of gift cards until the recipient actually buys something because the company doesn't know what the cost of sales is until the gift card is used. Even though I would guess that unused gift cards show up on the balance sheet (in account receivables?), if the recipient uses the gift card after Christmas when prices are discounted, margins could be negatively affected. Also, for companies that close their quarter 12/31, some holiday sales won't show up until the first quarter of next year.