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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Synapsid who wrote (7166)	11/3/1997 7:27:00 PM
From: Ken Muller	Read Replies (1) \| Respond to of 14577

Distributors almost aways have "return priviliges" in their contracts with oem suppliers. Also, in a sudden price downturn, the oem will usually authorize a "ship and debit" authorization which will give the distributor a credit against devices already in stock. This happens a lot when you renegotite price contracts quarterly with customers. All of this was probably happening normally, but the accounting guys screwed up the quarterly results. IMO, the results for the year shouldn't change much. Ken

To: Synapsid who wrote (7166)	11/4/1997 12:02:00 AM
From: Tom Terf	Respond to of 14577

>> Any idea how pricing pressures affect chips already sold to distributors but not to chip customers? <<< Who really knows if these chips were ever ordered, sold or shipped ? That's why accounts receivable shot up last quarter close to 90 days from 50 days. Recall similar fiasco when Diamond Multimedia lost $ 3M worth of S3 product. They never received parts, just an invoice. Recall MiniScribe, MediaVision, California Micro Devices ? You can ships parts without making shipments.