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To: Thomas M. who wrote (50231)	3/9/1998 6:56:00 PM
From: Fred Fahmy	Respond to of 186894

<Stick with facts? I said, "They wrote off everything but the kitchen sink." Looking at Q3, they wrote off $113 million, the equivalent of one to two quarter's earnings. Once you clean house like this, it's not hard to report a good quarter or two.> From GTW's 1997 Q3 edgar filing: "Nonrecurring Expenses As previously indicated, the Company recorded several nonrecurring pretax charges totaling $113.8 million for the third quarter of 1997. Of the nonrecurring charges, $59.7 million was for the write-off of in-process research and development acquired in the purchase of ALR and certain assets of Amiga Technologies. Also included in the nonrecurring charges was a non-cash write-off of $45.2 million resulting from the abandonment of a capitalized internal-use software project and certain computer equipment. In addition, $8.6 million was recorded for severance of employees and the closing of a foreign office as part of the Company's ongoing global reorganization." Is this what you call the "kitchen sink"?? The majority of the Q3 write-off was acquisition related. Is that cleaning house?? How does that write-off help Q4 earnings?? How do any of these charges help Q4 achieve record demand (i.e. record revenue)?? I didn't know that by simply taking write-offs you could get people to spend record amounts for your products in the following quarter. This is a very interesting theory. FF