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Technology Stocks : Corel Corp.

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To: Leo Mitkievicz who wrote (4043)12/22/1997 2:46:00 PM
From: Mr. Bean   of 9798
 
Leo: Not many times Bean gets to gloat over warnings of any kind.

Message 2080761

Re: Stuffing the channels. End of August 97.

To: +Bearded One (1718 )
From: +Bean Counter
Friday, Aug 29 1997 1:48PM EST
Reply # of 4047

What matters is the risk.

The risk of recording revenue in one quarter and having all the goods returned in another quarter. Hypothetically what would happen if a bug in the software made it unusable and was returned back to the vendor for credit and hence sent back to the manufacturer?

Sold for credit in first quarter.
Returned for Debit in the second quarter.

The risk is small. But boy what it would do to a stock!

Mr. Bean
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