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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD
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To: Len White who wrote (2782)1/13/1999 8:07:00 PM
From: Randy Ellingson   of 3115
 
Deferred Revenue is essentially prepaid sales. To recognize it as a liability instead of sales in the current period is conservative accounting. Depending on its composition, it can be an indicator of how well the new quarter will be starting off.

Thanks Len and ratlong. That makes sense, and I would guess that in Rational's case the increase in deferred revenues is generally a positive sign.

ratlong - Thanks *very* much for all your comments Re: the CC for those of us who may not take the time to listen. BTW, did someone post the CC phone number? I seem to recall it being hosted out of my area code (303) last time which means it costs me only time...

Randy
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