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

To: Ulrich Santo who wrote (4042)	12/22/1997 10:18:00 AM
From: Leo Mitkievicz	Read Replies (4) \| Respond to of 9798

Ulrich Most improbable that the distributors paid Corel before they got paid by their customers. Could the mystery cash be related to one of the product line deals? License revenue stream or one time payment? Or maybe they're just pushing out a lot of payables? Leo

To: Ulrich Santo who wrote (4042)	12/22/1997 2:20:00 PM
From: gregor	Read Replies (1) \| Respond to of 9798

Dear Ulrich: >>>>>>>>>Corels rising Cash level can only be explained with stuffing the channel with Draw and Office Products, collecting the cash, but not accounting it as sale. <<<<<<<<<< It is my understanding that Corel uses distributors, almost exclusively; so how would this be possible ? Even if they have a buyback agreement with the distributors when push comes to shove, they will not make the refunds. Or, to me they simply were shipping quanties far in excess of what was relevant to actual sales expectations. If this were so they were extending terms to their distributors and the excess would have shown up in balooning receivables-- which to my knowledge did not happen. So either they fradulently withheld the excess shipments as part of their receivables or tomorrows news announcement will say that through an accounting error they have discovered that the 100 million in sales were actually true sales and they are in the process of rewriting all the prior press releases on 4th qtr. adjustments to sales. JMHO ..gregor