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To: norm chin who wrote (571)	2/18/1999 8:11:00 AM
From: norm chin	Respond to of 1492

Correction "(4x100/189 where $1.89 is the estimated 1999 earnings according to Zacks)" should read...2000... instead of 1999. Sorry.

To: norm chin who wrote (571)	2/18/1999 12:04:00 PM
From: Chuzzlewit	Read Replies (2) \| Respond to of 1492

Norm, what a lot of people don't seem to appreciate is that these changes are reflective only of accounting policies, not performance. What will happen is that the assets will increase and a writeoff will be taken over a number of years. The effect will be to make operations more transparent. In effect, what companies were doing was to immediately recognize the anticipated expenses associated with the completion of acquired R&D. The SEC has said that these expenses must be amortized over the life of the project. These changes have no affect on taxes or cash flow. They will simply prevent companies from padding their earnings by hiding behind these estimated expenses. TTFN, CTC

To: norm chin who wrote (571)	2/18/1999 1:01:00 PM
From: Douglas V. Fant	Read Replies (1) \| Respond to of 1492

Norm, I believe that the charge would only affect the quarters retroactively in which the two transactions occurred. Mid- 1997 forward, so say six quarters at a penny/quarter or a $0.06 charge in total- or at least I read it in that fashion. Do you read the 10Q in a more prospective light in that the $0.01 impact would be on future quarters? And of course that is assuming that the SEC prevails 100% in their interpetation of the in-process R&D charges from the two acquisitions...So the charge might end up being a little less.... To me not a big impact when BMCS lists $1,024,000,000 cash and short-term investments in the bank as part of its curret assets in the same SEC Form 10Q.. Pretty solidly postioned.... At 1%/quarter BMCS earns $10MM in interest every quarter....A $0.06 charge times 215.5MM shares outstanding = $12.9mm dollars- so the interest off of BMCS's cash in the bank pays for the restated charge in slightly more than one quarter.... Sincerely, Doug F.