DIGL... Digital Lightwave.... Making Waves.... Message Board

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Technology Stocks : DIGL... Digital Lightwave.... Making Waves....

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To: squirrel who wrote (257)	1/17/1998 12:06:00 AM
From: Mahesh	of 934

Squirrel, 90 day payment terms are not unusual, and a new company hungry for sales has little leverage but to give in to 90 day payment terms. In some cases these 90 days get easily violated without even asking for extension. A small company would not impose any penalties on large service providers and other large customers in such cases. Risk of default in such instances is very low in case of a hardware product and especially state of the art product like DIGL's. On the other hand if a software company has DSOs (Days Sales outstanding increasing), the risk of default is much greater. Mahesh

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