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Technology Stocks : DIGL... Digital Lightwave.... Making Waves.... -- Ignore unavailable to you. Want to Upgrade?

To: squirrel who wrote (305)	1/23/1998 6:09:00 PM
From: (Bob) Zumbrunnen	Read Replies (1) \| Respond to of 934

For a look at another company who went through much the same thing some months ago, check out SYCR. Took one heck of a beating when it changed its accounting practices to not count revenue until product was in the end-users' hands, and is currently languishing and waiting for anything positive to come out of the company. It might give an idea how this kind of thing plays out over a longer period of time.

To: squirrel who wrote (305)	1/23/1998 6:51:00 PM
From: Tommy Hicks	Respond to of 934

I don't own and don't follow this stock but became interested because of similar problems that occurred with SYCR. There may be a good explanation or it may be coincedence, but there has been some insider selling in the months prior to this announcement. insidertrader.com insidertrader.com insidertrader.com th

To: squirrel who wrote (305)	1/26/1998 1:16:00 PM
From: squirrel	Read Replies (1) \| Respond to of 934

One Person's Interpretation of the January 22, 1998, Press Release DIGL Income Statement Info: All Figures in Millions except EPS data Year-to-Date Pro-Forma Year-to-Date Thru Q3 Q4 Thru Q4 Sales $15.1 ($ 4.8) $10.3 Op't'g Inc. $ 0.7 ($ 6.2) ($ 5.5) Net Income $ 2.1 ($ 7.6) ($ 5.5) Profit % 13.9% (158.%) (53.3%) EPS $0.08 ($0.29) ($0.21) In the theorectical event that prior quarters' earnings could not be restated, the Pro-Forma figures represent how DIGL would have to report Q4 if they were to bring all the YTD figures in line with GAAP and in line with their expressed policies. I bought into DIGL in the last two weeks on the basis of their published quarterlies, and with reasonable expectation that they would show some increase in YTD sales over what was reported at the end of Q3. An unreasonable and outlandish conclusion would have been to expect the company to not only report no increase in revenue through Q4, but also report that 97 revenue through Q3 had been grossly overstated by 47% and therefore the company was pulling almost $5 million of revenue and over $7.5 million of income off the table. Balance Sheet Info: Q3 Q4 Cash $33.5 $24 Receivables $10.8 $ ? Inventories $ 1.3 $ ? Deferred Revenue -0- $ ? Misc. Info Firm Backlog $? $? To determine, just how ugly the balance sheet will become, was too difficult for me to extrapolate. Anybody out there with a good calculator that can fill in the blanks? For any of you out there that think some of us are just sore losers, please explain why historical information is expressly excluded from the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Boundaries and limits exist for a reason. As an investor I can endure the pain (and I have)of buying into a company that has given its best shot and missed. It is quite another matter when I am given something other than the truth upon which to make investment decisions. sec.gov "In fact, inquiries and complaints from the general public are the primary sources of leads for detecting law violations in securities transactions." WHY AND WHEN DID BETH MORRIS LEAVE THE COMPANY? Any comments or corrections to this posting? tia