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Technology Stocks : Western Digital (WDC) -- Ignore unavailable to you. Want to Upgrade?

To: John Cuthbertson who wrote (8624)	1/30/1998 2:17:00 PM
From: SJSharky	Read Replies (2) \| Respond to of 11057

That's why there are such provisions in accounting rules. Remember, there can be non-recurring gains as well as non-recurring losses. Actually, there are no provisions for such charges in the accounting rules. That's why they could only mention these "special" charges in the verbage portion of the press release. If you look at the consolidated statement of income, they are unable to separate out the charges because there is no GAAP provision. The charges don't qualify as extraordinary or as restructuring. Reading the press release, it looked like the charges were mainly for inventory writedowns (which should be written off to COS) and some other asset impairments due to the planned switch from TFI to MR (writeoff to R&D most likely depending on the type of asset). As such, it seems like WDC did a good job in their press release to segregate these charges even though according to GAAP, they are ordinary expenses. I will agree though they do appear to be one-time charges. Still, it was a creative job in terms of presenting the results. I sold at the open today...wouldn't go so far as to buy puts though. Seems like the stock couldn't go much lower even with more bad news. --Ryan