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Technology Stocks : BAY Ntwks (under House) -- Ignore unavailable to you. Want to Upgrade?

To: Daveyk who wrote (6892)	7/21/1998 9:37:00 PM
From: Bosco	Read Replies (2) \| Respond to of 6980

Dear Dave - thanks for the explanation. First, in light of the market action today, I think the "blowout numbers" expectation was only in the minds of a few individuals [here? Or yahoo's -which I don't read?] You are right about tax rate as well as profit vs revenue. However, it seems that IBM has done the same tax rate trick. I think it is one of those discretionary items WS will use at its convenience! Also, revenue seems to be affecting people more readily. Maybe under the normal circumstance, profit and revenue would have similar weight. However, since BAY is getting in bed with NT, revenue, and therefore install base takes the 1st cut. Of course, maybe it is my rationalization, since I am holding the stock <VBG> best, Bosco

To: Daveyk who wrote (6892)	7/22/1998 12:22:00 PM
From: Lerxst	Read Replies (1) \| Respond to of 6980

Dave, In the conference call, what I interpreted to be said was that a tax rate of 25% was used in Q4 to bring the overall yearly tax rate to 33%. If this is the correct interpretation, I think it's far less sinister than you are making it out to be. Of course, I'm an engineer, not an accountant so I may have misunderstood the statement during the CC, as well. Also, this is my personal interpretation and opinion, not that of my employer. I'm sure a call to IR would provide the correct answer. Regards, Lerxst