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

To: Chuck Bleakney who wrote (4023)	11/6/1997 5:02:00 PM
From: DJBEINO	Read Replies (1) \| Respond to of 7841

16:49 [SEG] SEAGATE SETTLEMENT WILL GIVE $22M REDUCTION AGAINST $153M CHRG IN Q 16:48 [SEG] SEAGATE SETTLES WITH AMSTRAD PLC.

To: Chuck Bleakney who wrote (4023)	11/6/1997 9:27:00 PM
From: Certafied	Read Replies (1) \| Respond to of 7841

Based on a 40% corporate tax rate the reduction is then only $13.2 million not $22 million. (Besides the lawyers, Uncle Sam wants his cut to.) When the reserve for the law suit was originally recorded was it an extraordinary charge below the line? If yes this will not effect net income from operations. Net income from operations is the important factor. We don't invest on one time charges and profits a company may make, obviously because its non-recurring and not determinable. Does anyone know what this fresh legal battle is about and how much is going to be reserved? We may see the $22 million disappear before our very eyes. Who knows an additonal reserve may exceed the $22 million and we may see an increase in the one time charge further decreasing earnings per share in the next quarter. This doesn't sound like good news to me. It sounds like it is getting worse. Watch out below.