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Technology Stocks : THQ,Inc. (THQI) -- Ignore unavailable to you. Want to Upgrade?

To: Marc Newman who wrote (8289)	10/22/1998 11:23:00 AM
From: Kory	Read Replies (1) \| Respond to of 14266

As pointed out, BF announced in the conference call that the receivable reserve at 9/30 was approx. $11 million. Receivable reserve at the end of June 1998 was $12.4 if you count the foreign reserves as well. Don't know if BF was including foreign reserves in the $11M or not. In any event, THQ has gross receivables of about $21M less the reserve of ($11M) to get them their reported $10M net. This is what the laugh on the call was about the reserve being more than the resulting net. Amazing to me that THQ only had gross outstanding receivables of $21M at the end of the quarter given that so many releases were late in the quarter. Guess WCW reorders were shipped early and already paid for by the end of the quarter. There is no risk on the balance sheet with the possible exception of all the prepaid costs for licenses. BF was a little vague here, but I'm sure it has more to do with not wanting competition to know terms of deals, than to be aggressive in booking costs. Interesting was BF belief that Playstation and N64 console prices would decrease to $99 next year, and strong initial sales of Color Gameboy. I reiterate my sleeper hit as the colorized "A Bugs Life", :-) Kory