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Technology Stocks : Avid Technology -- Ignore unavailable to you. Want to Upgrade?

To: orson sanderson who wrote (688)	4/9/1999 11:10:00 AM
From: BMcV	Read Replies (1) \| Respond to of 777

This from Chuzzlewit on the PMTC thread is relevant to AVID. It is an analyst's comment on another company's SEC mandated change in accounting for purchases: >> In justifying his downgrade of NETA he said, and I quote from his report on NETA, "Part of our downgrade stems from our assessment of the probabilities of the market looking through the amortization changes for valuation purposes. ... Consequently, most investors will likely use reported earnings adjusted for special charges in the quarter because they don't have comparable historicals to use for comparison purposes." << Sad, but probably true, that AVID will trade more in line with reported earnings (much reduced by amortization of goodwill) instead of actual operating earnings or cash flow. I anticipate that AVID will continue to report both earnings before and after this noncash charge, but it always looks a little dodgy when companies fiddle too much with their reports.