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Technology Stocks : Q/Media Software Corp (QMS.T) -- Ignore unavailable to you. Want to Upgrade?

To: Serge Collins who wrote (392)	10/28/1998 10:29:00 AM
From: Gordo	Respond to of 568

Serge, The fact that QMS was changing its accounting of goodwill was reported on this thread by Philip Choy on October 15 - check out the following link: Message 6029316 I would have to disagree with you that this will end the company's earnings growth. Virtually every other public company out there amortizes goodwill over some period, according to generally accepted accounting principles. This doesn't stop them from making acquisitions, but it does stop them from OVERPAYING for acquisitions (something I suspect QMS may have done in the past). The only way to deliver earnings growth through an acquisition is to realize synergies through reduced cost or economies of scale. QMS is attempting to do this, and a simple change in accounting policy should have no impact on their ability to continue to do so.

To: Serge Collins who wrote (392)	10/29/1998 11:27:00 AM
From: Philip Choy	Read Replies (1) \| Respond to of 568

Serge, I know this stock has disappointed a lot of people, but it is progressing exactly the way it was planned, growth by acquisition. If you look carefully into the 4th quarter numbers, revenue was 14 mill+ and net profit was 1.2 mill+. Net profit margin is 9% which is very good. There is strong indication QMS is going to achieve 80 million revenue in fiscal 1999. Using the 9% figure, one has 7 million net profit from operation. Compare to 3 years age, QMS has performed quite good except bringing share value to the share holders. I think what the share holder has to do now, is to call up the management to ask them to find way to enhance share value. We are the owners of the company, we can demand that at least. Regards.