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Technology Stocks : Dell Technologies Inc. -- Ignore unavailable to you. Want to Upgrade?

To: Byron Xiao who wrote (87893)	1/5/1999 6:40:00 PM
From: D.J.Smyth	Respond to of 176387

Byron, another question on prnewswire.com to what extent does this affect SUNW, since SUNW is a software developer? Although, I realize that most of SUNW's earnings do not come from software sales/development. Earnings restatements/revisions are a pain in the groin. thanks for the response. I've printed and will review in depth. (for article on software industry go to "today's news" (Jan 5) find the following - information was posted on PR after market close): Software Industry Braces for Wave of Earnings Restatements; New Rules Impacting In-Process Research and Development Being Applied Retroactively by SEC Leading Trade Association Expresses Strong Concern to SEC Chairman WASHINGTON, Jan. 5 /PRNewswire/ -- The leading trade association for the software and information industry today expressed its deep concern and frustration at new regulations being applied by the Securities and Exchange Commission (SEC) to accounting for acquired "in-process research and development (IPR&D)." In a letter sent to the chairman of the SEC, Arthur Levitt, Jr., the Software & Information Industry Association (SIIA) stated that throughout the industry there was a resounding consensus the SEC had been unfair in both its rollout and enforcement of the new requirements which were issued last September. The new requirements update accounting standards that were issued nearly three decades ago and prior to the advent of the software industry. The SIIA also called on the SEC to reconsider its decision to apply the new rules retroactively. "While we applaud recent efforts by the SEC to curtail the practice of earnings management, we are deeply concerned that there has been no process associated with the development of the new rules and guidance for valuing IPR&D. The decision by the SEC to then retroactively apply these new rules will have a major impact on the hundreds of companies currently driving America's economic growth. These firms could be forced to restate their earnings and, in the process, erode their credibility and face potential exposure to shareholder lawsuits," said Mark Nebergall, SIIA vice president for finance and tax policy. "While we do not oppose new rules and guidance, we have always hoped to be involved in their development. In this instance, the new rules and guidance were issued through a letter from the Chief Accountant of the SEC to the American Institute of Certified Public Accountants (AICPA). There was no notice that new rules were coming, there was no opportunity for comment, and there was no transition period allowed. "Since the issuance of the Chief Accountant's letter, there has been little in the way of SEC follow-up with the major accounting firms and no consensus exists with regard to the specifics of the new requirements. The current climate fostered by the SEC has led to confusion, uncertainty and uneven application of the new rules by both issuers and auditors. This could lead to further confusion in the financial markets when the next round of financial statements is released," Nebergall said. "At the least, we believe the new rules should be applied prospectively only, to a firm's next fiscal accounting period. At the most, we hope this September letter will be withdrawn and the formal rule making process, in accordance with usual administrative procedures, will be applied to the proper development of revised guidance and rules for valuing IPR&D." The Software & Information Industry Association (SIIA) unites the software and information industries into a powerful global consortium. This union of code and content in the digital age delivers unmatched industry advocacy, business development, research and education to 1,500 SIIA member companies. More information on SIIA and its range of activities can be found at siia.net. (I restate <<The decision by the SEC to then retroactively apply these new rules will have a major impact on the hundreds of companies currently driving America's economic growth. These firms could be forced to restate their earnings and, in the process, erode their credibility and face potential exposure to shareholder lawsuits," said Mark Nebergall, SIIA vice president>>)

To: Byron Xiao who wrote (87893)	1/5/1999 9:45:00 PM
From: On the QT	Respond to of 176387

Byron, Thanks for sharing your thoughts. You said: "I've traded SUNW on peaks and valleys the past 2 years. I've made pretty good money on it, getting 5-10 pts swing every couple months. I tried the same thing when the market panic in late September. Got some SUNW at 42, added some more at 40. Since then, the following things have transpired: Etc.". Byron, SUNW is one the stocks I have been tracking for my own investment trading discipline. Unfortunately I became too involved in hanging tough with Dell as a company that I forgot to separate that with the performance of the stock! Dell made important money for me beyond the flat bet but I was really close to moving on your stock. I gave greater priority to IBM and CPQ which was fine, but SUNW would have been a great short term home run for me. Can't always hit them as you did. Nice play. Regards, QT