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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Thomas M. who wrote (56212)	10/20/1998 1:01:00 PM
From: bucky89	Read Replies (3) \| Respond to of 61433

... analyst Paul Johnson wrote in a research note Tuesday morning that the loans should be included in the quarter's financial performance as a cost of doing business. "The net result, in our opinion, is that earnings were 30 cents per share, not the 32 cents reported ... This is contrary to my understanding of the financials. I thought the loans were not listed as an extraordinary item, but rather were included as a cost under the SG&A section, and thus are included in net income. You're right Thomas. I had respect for Paul Johnson up until now, but he's now whacked like all the rest of the analysts. The loan WAS included under SG&A and was offset on the balance sheet by the $8.7M reserve. When that reserve gets reversed in future quarters, it will give a boost to EBIT. bucky89