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Author: Buffboy25 One star, 50 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 28  
Subject: Key SEC filing info Date: 1/6/2004 3:30 PM
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"The principal reason for the restatement is concern over
the accounting for the allowance for doubtful accounts. The Company previously
announced that the allowance is expected to be in the range of 14% to 17% of
accounts receivable outstanding as of September 27, 2003, but that this estimate
was subject to further adjustment based upon completion of the Company's
analysis and Ernst & Young's audit of the Company's financial statements. Based
on the most recent information available, the Company now believes the allowance
may exceed 17%.

The Company is currently working with Ernst & Young to complete the
restatement. At this time, it is not clear what periods will be restated or the
dollar amount of the restatements. Until the Audit Committee completes its
previously announced internal investigation and Ernst & Young is able to
complete its audit, the total impact on the Company's financial statements
cannot be known. The Company is reviewing the effects of these matters on its
credit facility and is discussing such matters with its lenders. The Company
also announced that as a result of the restatement, the filing of its Form 10-K
for the fiscal year ended September 27, 2003 may be delayed.

Ernst & Young is currently auditing the Company's financial statements
for the year ended September 27, 2003. The Company and Ernst & Young will
continue to consider what adjustments will be necessary and the period or
periods in which any adjustments should be recorded. The Company will disclose more detailed
information on its financial results upon completion of the audit."

http://ir.thomsonfn.com/InvestorRelations/SecFilings.aspx?partner=8675&type=results&cont_qualifier=C&doc_type=8-K&doc_dcn=031010413&cont_format=ASFILEDV&doc_product=E&viewer=Y


Bottom line: Even if doubtful accounts exceed 17% by a fair margin, this drop in price is likely an overreaction. I'm pressing on to learn more about their financial condition.


Buffboy
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