Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : VISIO Corp (VSIO): Big ISO 9000 Play -- Ignore unavailable to you. Want to Upgrade?

To: Grommit who wrote (244)	11/2/1998 5:07:00 PM
From: Dan Spillane	Respond to of 522

Grommit you may have hit on a key point. If the tax rate is low due to Visio's acquisitions as you suggest, I can see it continuing into the future for some time. Indeed, Visio has been making really smart acquisitions, and it has a lot of cash and/or stock equity for more of these. No doubt Visio has tax planning in mind, if it has any control. You said: I do not know why VSIO's tax rate is low. (In looking briefly at the SEC documents, they certainly do not bring attention to the matter.) I bet it is NOLs from acquired companies.

To: Grommit who wrote (244)	11/2/1998 8:00:00 PM
From: Dan Spillane	Read Replies (1) \| Respond to of 522

Tax information from VISIO CORPORATION, FORM 10-K, for the fiscal year ended September 30, 1997... INCOME TAXES (lower rate for 1997) "...primarily due to ... income taxed in other jurisdictions at rates lower than the U.S. rate" Translation: This company maintains foreign operations (and will continue to for the forseeable future); this means income generated internationally benefits from a lower tax rate. With this information, I stand by my statement concerning "low Visio tax rates for the forseeable future." I might also expect the macro factors I described previously to lead to a lower U.S. base rate much further out. In addition, from other financial notes I have determined that the company has utilized NOL carryforwards in the past per acquisitions, so my comment about tax planning relative to acquired companies is also on the mark.