LEGATO SYSTEMS LGTO Message Board

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Technology Stocks : LEGATO SYSTEMS LGTO

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To: aliveinsf who wrote (679)	1/24/2000 11:44:00 AM
From: Edwarda	Read Replies (1) of 1138

I have been described in many ways during my life; naive has never been one of them. You are correct, revenue recognition has been an issue for months. However, PW took it to a new level for LGTO in the quarter just ended, moving the company to a modified cash accounting even for contracts with a large percentage of new product licensing. You may recall Mr. Payne's description of it as a "watershed event." Is he also naive? Further, it appears that the change was introduced by the auditor during what was supposed to be a routine review. If this is the case, then the CFO could easily have been caught by surprise. Let me make it clear that I am not "cheerleading" this stock. Although I have been following the company for a long time, I do not currently own the stock and should be interested in buying only at lower prices. It's likely to be "dead" money in the near term as estimates settle down and the market has a chance to evaluate what is really going on at the company. I simply object to the immediate screams of fraud.

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