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Technology Stocks : Vari-L (VARL) -- Ignore unavailable to you. Want to Upgrade?

To: JakeStraw who wrote (663)	3/25/1998 4:31:00 PM
From: Gregory DeMoully	Read Replies (1) \| Respond to of 2702

To all: looks like VARL management might be reading SI too. Within a couple of hours of my earlier post today, I got a response to my email of Friday. My concern regarding the seasonal effect of VARL earnings has been that VARL was deriving advance revenues in the 4th quarter for product to be shipped at a later date which could present problems for making the Q1 estimates. Here is a copy of the VARL correspondence, anyone care to comment? Dear Mr. DeMoully, You asked for an explanation regarding the seasonal pattern of earnings drop off (and revenue) in the first quarter from the fourth quarter: We continue to have a portion of our business derived from the military/aerospace industry segment. During each fourth quarter, these customers accelerate their receipt of product from us which allows them to record revenue upon receipt of our product. In addition, some of these customers must spend to budget levels or they might lose the ability in the subsequent budget periods to purchase the product. In addition, we have observed over the past few years that some of our commercial customers (primarily foreign) have also accelerated the receipt of product from us in the fourth quarter versus the other three quarters. I did make a presentation to the Red Chip Review conference in Seattle last week. We will mail to you an investor packet and a copy of the silde presentation. After you have had an opportunity to review the information please feel free to call me at 371-1560 if you have any questions that I may answer. Thank you for your interest and this communication. We enjoy discussing Vari-L with our shareholders. Jon L. Clark Vice President of Finance