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To: Logain Ablar who wrote (2857)3/5/1998 6:55:00 PM
From: Snowshoe  Read Replies (1) | Respond to of 10309
 
Tim, there has been a lot of concern here about the earnings charges. I thought the write-off was for tax purposes, so I didn't pay much attention.

Then during the conference call something was said about a limitation on the tax write-off for the NCI technology purchase. Now Jason is saying there was no tax benefit on the NCI deal. That is the point I am trying to clarify. Did part or all of the NCI charge fail to qualify for a tax write-off? If so, why was it charged against earnings? Can anyone clarify this?

WIND's earnings release stated: "During the quarter, the company took a one-time pre-tax charge of $15,159,000 ($13,353,000 after-tax) resulting from the previously announced technology license from Network Computer Inc. and the cash purchase of Objective Software Technology Ltd." I recall that approximately $10,000,000 of this was for the NCI deal.