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Technology Stocks : GTIS - Will it be a Phoenix or not ? -- Ignore unavailable to you. Want to Upgrade?

To: JON7 who wrote (1467)	2/18/1998 2:11:00 AM
From: glenn s. turner	Read Replies (1) \| Respond to of 2319

The prepaid royalties being written off aren't just for future games but also for games on the shelf now in stores that simply didn't sell. The short life span of products is mentioned. It doesn't make since to amortize a royalty over several years when the actual product's selling life only lasts a few months (if the product is EVER 'hot'). This write-off probably covers old mistakes that have been making the company look unrealistically profitable for some time. Future earnings should now be clean and reflect actual game development expenditures for that quarter. The question is - were there any actual profits? This write-off appears to wipe out all (or most) profits from the last 2 years.

To: JON7 who wrote (1467)	2/18/1998 7:32:00 AM
From: 4-UR-Eyes-Only	Read Replies (1) \| Respond to of 2319

<<.. he company has 71,867 million in cash. that's not bad. ...>> The $71M is for Dec. 1996. $40M cash for 1997 year-end. The A/R aging is almost 3 months. This is very worrisome.

To: JON7 who wrote (1467)	2/18/1998 11:09:00 AM
From: RJC2006	Respond to of 2319

I don't think they have 70 million in cash. They have had a very high accounts receivable which killed the bottom line last quarter. The problem I have with this continual pre-paid royalty write off is that those write offs are NEVER itemized so you don't know where you stand at any given time. Is it a pre-paid royalty for "Unreal" or something else? Who knows, but it would be nice to know how much investment is due the unreleased titles and which titles are owed what. As for SingleTrac, correct me if I am wrong but I thought that was written off last quarter? How long will it take to finally get that acquisition finished? It seems that GT has been acquiring SingleTrac for quite a long time now. Unfortunately, I prefer Buddy's take on the whole situation. The fact is when the everything is said and done GT garners a big fat year end goose egg. A whole year of work down the drain with all the hyped up Abe's, Total Annihilations and a host of other bogus titles not making a bit of difference. The part that really bugs me is management's rather cavalier attitude about pre-paid royalties...as though they don't know they are going to have to pay them. The planning here is non existent. I sold out at cutting my losses as best I could. My patience was worn thin a long time ago. I've had enough.