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Technology Stocks : Red Brick Systems -- Ignore unavailable to you. Want to Upgrade?

To: Ray Rueb who wrote (176)	2/6/1998 6:53:00 PM
From: Mark Finger	Respond to of 304

>>Do you think the guys buying these things are technically competent >>DW professionals? NO WAY. Most projects are lead by COBOL guys who >>created some major OLTP app 5 years ago and keep asking stupid >>questions like "how fast can you update 1 row?". The above simply says a lot about the kind of companies that you are selling to. IFMX has virtually always sold to companies that had more technical competancy (and thus somewhat less need of outside groups like yours). >>Quick question: Would you bet your career on a company that LIED on >>their financial reports for three years? Two items on this: 1. the period of lying was primarily about 18 months--from late 1995 to early 1997. The period of restatements was further because IFMX completely changed (for revenue recognition) to comply with the new accounting rules that were introduced in 1996. These rules were primarily concerned with the tendency to stuff the channel (VAR's and distributers). The longer period of restatement (15 quarters) was to show the changes of sales over time (i.e., theslowing growth began earlier than previously known) and to make recovery look like less of a mountain. 2. Virtually all the management involved with this is gone. The board took decisive action on this when it became known--new president hired and installed within 4 months of the April Fool's announcement. Top management remaining are generally technical, and not involved in sales and accounting, and emphasize what has always been the strength of the company. Mark