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Technology Stocks : S3 (A LONGER TERM PERSPECTIVE) -- Ignore unavailable to you. Want to Upgrade?

To: Mark Chavez who wrote (10383)	4/4/1998 3:53:00 PM
From: stock talk	Read Replies (1) \| Respond to of 14577

Hey, haven't I heard this story somewhere before?? Friday April 3, 10:46 pm Eastern Time Company Press Release Raster Graphics Expects to Release Revised Results for 1997 SAN JOSE, Calif.--(BUSINESS WIRE)--April 3, 1998--Raster Graphics, Inc. (NASDAQ:RGFX - news), today announced that the Company expects to release revised results for the year ended December 31, 1997. In February 1998, Remo Canessa joined Raster Graphics as Vice President Finance and Chief Financial Officer. In the course of his review of the Company's 1997 financial records, Mr. Canessa determined that a number of transactions did not meet the Company's pre-existing revenue recognition policies. In addition, the Company has strengthened its revenue recognition policies and has adopted more stringent procedures to ensure the proper application of those policies. The reversal of revenues is currently estimated to range from $4 to $5 million for the year ended December 31, 1997. The Company expects that it will report a loss substantially in excess of the estimated results announced on February 26, 1998, due to the impact of the decreased revenue on gross margins and increases in various reserve accounts. Raster Graphics expects to complete its audit and file the Form 10-K for the year ended December 31, 1997 on or about April 15, 1998. Additionally, the Company announced that it has undertaken a corporate restructuring which has resulted in headcount reduction of approximately 15 percent from total headcount at the beginning of 1998. The headcount reduction was effected at various levels of the Company, and has resulted in the layoff or resignation of three corporate officers. The Company's expectations are preliminary, subject to completion of the final audit. The estimated amounts of revenue and anticipated date for filing of the Company's Form 10-K constitute forward-looking statements. Actual results could differ materially from those estimated depending on a number of factors, including whether all revenue transactions included in estimated revenues meet the Company's revenue recognition requirements, the adequacy of estimated accruals and reserves, and other risk factors, including but not limited to those described in the Company's Form 10-K for the year ended December 31, 1996, as filed with the Securities and Exchange Commission (SEC), and in the Company's other SEC filings including the Form 10-Q for the quarter ended September 30, 1997.