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Technology Stocks : VLSI Technology - Waiting for good news from NASDAQ !!! -- Ignore unavailable to you. Want to Upgrade?

To: E.J. Neitz Jr who wrote (4287)	9/2/1998 10:09:00 PM
From: BWAC	Respond to of 6565

Mr. Nietz Thanks for pointing out that 150 million is to be spent from "existing cash balances and cash from operations" to purchase equipment. Lets explore the "cash from operations" part. If you will refer to the statement of cash flows please note that depreciation is an addition to the "cash generated by Operations" section. This is in contrast to depreciation on the income statement which is an expense. Depreciation though is not a cash expense. It is an estimate of the used portion of an asset. It does not "take" cash although it does reduce earnings. Sorta confusing sorry. Anyway what I'm saying is that although VLSI might only breakeven this year for earnings, approximately 100 million cash could still be generated from operations. (Depreciation for last year was approx. 108 million)