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

To: Carolyn1 who wrote (7448)	11/5/1997 9:23:00 PM
From: Tom Terf	Read Replies (1) \| Respond to of 14577

Carolyn: All good questions.. The Company gets to fix the reporting problems... especially as they have come clean and are admitting the problem. They will need to bring another independent firm to do thorough -- and I mean REAL thorough -- review of all results dating back for 4 - 6 quarters I would guess. Probably when Gary Johnson took over as CEO. This will take quite some time and it will very expensive ($ 2M) and painstaking as well. Lawyers also involved at $ 400 per hour. The danger here is that they may be able to buy time with the NASDAQ people, and file the requisite SEC reports with the 60 day grace period after the period closes. If this happens their stock will trade on the pink sheets until they go the data together. It must be squeaky clean before it will signed off.. that's why it can take so long. Lawyers and accounts are all into the act... with their meters running, or course. It's very fluid at this point. S3 must go to NASDAQ and explain problem and what they are doijng to resolve it. Further, this is complicated by shareholder suits which could require discovery documentation which further exaserbates the situation. Not real pretty going forward, is my guess. That's why I think it will go from bad to worse within the next 7 - 10 days.