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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: ELFRAM LYEW who wrote (3934)	1/6/1999 11:09:00 AM
From: Just_Observing	Read Replies (1) \| Respond to of 6021

SEC questioning NETA's write-offs NETA has received a letter from the SEC questioning their write-offs. According to Prabhat Goyal, CFO, NETA may have to write-off 220 million against earnings over the next 5 to 7 years. This radically alters the PE of NETA. Besides, it puts a crimp in their strategy of acquiring companies and then taking huge write-offs. The company had been founded on such a strategy. In hindsight, paying 130 million for CYBR and 650 million for SOLLY may have been a tad high. In any case, this is only preliminary. Read about JDAS if you want to see what happens when R&D write-offs are disallowed. BTW, Larson wants to spinoff Mcafee.com as a separate company. NETA exceed revenues and earnings for the quarter. All info from this mornings conference call. Did not take notes since I was too sleepy. All info is subject to errors in listening. I am sure that if you call NAI, they can give you a number for replay of conference call.