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

To: David K. who wrote (7586)	11/8/1997 9:49:00 AM
From: Jan A. Van Hummel	Read Replies (3) \| Respond to of 14577

David, No, I don't think these will be added sales. The distibutor's inventory is expected to be sold during the 4th qtr and then correctly recognized as revenues at that time. The inventory thus sold will be replaced but the revenues for the replacement will only be recognized once sold by the distributors. Net result? Whatever amount is restated represents a permanent loss of sales over the past reporting periods. I don't think the suits are going to do any good. Any payment by the company, if it were to come to that, would cost the shareholder more than if there is no payout. If it forces a change at the top, that may be the only good thing to come out of it. Your observation on the auditor is a good one. However, it does depend on when this "oversight" started. If it started during 1996, Deloitte & Touche failed to uncover it as their report in fiscal 1996 report had no qualifications in it. In that case they may be co-responsible. As I understand it the company has engaged the services of an auditor to sift through this mess and there should be a report due on the extent of the problem by the middle of the month. Until that time a lot of what is going on is pure conjecture escalating in near hysteria. We are where we are. It is more important to see that we go forward from here than to hone our skills as a lynch mob. Once the extent of the problem has been determined and published we need to see the appropriate steps taken by the BoD that will show us shareholders and the investment community, that the company is being steered back on the track we all want to see it follow. JMHO Jan