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To: Dave Yenne who wrote (10969)	5/24/1998 6:19:00 PM
From: Robert Graham	Respond to of 14631

I imagine like everything else, the outcome will be negotiated by the current Informix management, including the guilty parties. I think since Bob F is new CEO who has made the effort to restate and meet listing requirements with the stock exchange, and there is a new CFO in place under which new revenue accounting guidelines have been instituted, the SEC will consider this in their final determination. This is just my opinion of course. I think the judgement by the SEC will rest on seeing if Informix is operating in a substantially different way from their previous operating practices with regards to its handling of the matters under investigation. Specifically, this relates to misrepresented financials (accounting irregularities), public disclosures, and insider trading. I hope this last restatement is not considered as "business as usual" by the SEC. I would not think so, but I would not be surprised if the SEC talks to Bob F about this in their investigation. Bob Graham

To: Dave Yenne who wrote (10969)	5/26/1998 11:16:00 AM
From: Mark Finger	Respond to of 14631

>>I knew I read or heard about the SEC investigation somewhere. Here is a magazine reference. news.com >>The Securities and Exchange Commission, meanwhile, is reviewing the >>"3.5 tons" of documents that Informix sent the agency for its >>pending investigation of the company. The materials cover four years >>of Informix's financial data. Dexmier said Informix is cooperating >>with the SEC and does not know when the matter will be resolved. Incidentally, for my comments about Sybase becoming compliant with the new rules, I said that they were "trying" to become compliant in Q1 or Q2. This was based on a article from about 2 months ago talking about the industry as a whole. Here is the statement from the 10-Q (just filed). >>Effective January 1, 1998, the Company adopted the American >>Institute of Certified Public Accountants Statement of Position No. >>97-2, "Software Revenue Recognition" (SOP 97-2), which supercedes >>SOP 91-1. I believe that means that Q1 is compliant. The only difference is that I said "trying" because I did not have remember seeing a stronger wording anywhere. The other item was that the restatement (at least publically) for last year on Sybase involved putting the Japanese unit on a "cash" basis. However, a cash basis is not necessarily compliant with the new accounting rules, because many contracts can involve cash payments independent of the actual sell through of product. Since they did not talk about the new rules in that statement and since they said that the cash basis only applied to Japan, I had wondered about when they were converting to the new rules. At least that puts Sybase ahead of Oracle in this area (I have yet to hear anything about them converting).