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Politics : Formerly About Applied Materials -- Ignore unavailable to you. Want to Upgrade?

To: robbie who wrote (20043)	6/9/1998 3:00:00 PM
From: Teri Skogerboe	Respond to of 70976

Robbie, Alan, Re: the accounting thing. They are referring to the Trikon licensing agreement. I'm puzzled too, because the amount (32,227) is shown in the "cash paid for licensed technology" (see next post for a snippet from the 10Q)...so how did it "improve operating cash flow by 26 percent?" One thing it seemed to have enhanced was "operating expenses as a percentage of sales", since the "acquired in-process R&D expenses" were excluded from operating expenses. Their problem in the article seems to be that this practice may have helped mask the seemingly apparent fact that business wasn't so strong. That part makes sense to me. However, no one needed to focus on the accounting to realize that business in the semi-equip world was weakening. Bottom line, I agree with you, it's a non-event. And what will move the stock are the business fundamentals (e.g. B2B) and the cycle, not a $32 million accounting charge, IMO. I thought Gene said it well, this is Gretchen's "thing" of the moment. So, do you think I'm missing something here?