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To: QuentR who wrote (59108)	4/21/1999 10:06:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

QuentR: That's the way I heard it. That being the case, these are good quality numbers, albeit low numbers. Also note that the tax rate was much higher (34%?) than last quarter (I think it was 18%?). I assume tax credits are being reserved for subsequent quarters - and they wrote this one off as a bad quarter. Doing running claculations in my head as they were talking I counted about $1 billion in cash expended for stock re-purchase ($250 million?), zip2, shopping.com and otehr developmental monies for AV. As I have said most of that will come back unto to the balance sheet when AV is spun-off. (see my next post on this one) Also noted that most of the lay-offs have been done, the remaining (1,500?) probably in Germany. However, a post the other day suggested that they have achieved this number by contracting out and the same employees are there wearing different overalls.

To: QuentR who wrote (59108)	4/21/1999 10:16:00 AM
From: rupert1	Read Replies (1) \| Respond to of 97611

Do we have an accountant in the house - professional or amateur? How will the shares COMPAQ retains in Alta Vista be accounted for after the spin-off? Apparently, it is possible to elect to run the market value of holdings through the profit and loss so that it is reflected in the EPS. I would imagine that COMPAQ won't do that because of the wild swings that might produce in the EPS as the AV share price rises and falls. Presumably, then, the value will be either the acquisition cost, or the IPO price before market on the 1st day or, eventually, the proceeds from their sale. If it is the acquisition cost will this be calculated by breaking out the relevant portion of the purchase price for Digital, added to the cash given by COMPAQ to the private AV together with the cost of zip2 and shopping.com. Whatever valuation is shown on the books, will the AV shares be categorised as "Cash or Liquid Assets"