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To: Alomex who wrote (10740)	4/2/1998 2:39:00 PM
From: Phillip C. Lee	Respond to of 213177

I speculate that, for example, killing Newton will result in a one time charge I remember Apple has a reserved fund used for restructuring cost. On the other hand, the savings from layoffs can contribute to the operating cost reductions. Anderson felt confident that reducing further operating costs will continue, probably reducing another 20m from Q1's (probably you could refer to Eric's Q2 estimates for operating costs.) Phil

To: Alomex who wrote (10740)	4/2/1998 9:01:00 PM
From: Idomeneus	Respond to of 213177

Alomex: I don't think we'll see any one-time charge for the Newton shutdown this quarter. The majority of the Newton engineers were moved into the Rhapsody/Powerbook teams (software/hardware) and I remember Fred Anderson quoted as saying (when they first announced the shutdown) that they had more than enough cash in the restructuring reserves to pay for the few people who they did show the door. Also, the Newton was actually produced in non-Apple factories in Japan, so there won't be any factory switchover involved. All in all, seems like the Newton closing might have no effect at all.