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Technology Stocks : Entrust Technologies Inc (ENTU)

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To: Mark T. Heath who wrote (76)1/26/1999 11:36:00 AM
From: Wizard  Read Replies (1) of 1205
 
Entrust is fully compliant with GAAP. They are a normal software company on the normal software accounting model. VRSN has chosen to be a services company and recognizes revenues differently. My point is that a service model is just inherently better than a software model. It has to do with predictability. VRSN's revenues grew nearly 200% in Q4 while deferring tons of revenue. VRSN is like AUD or EDS but growing at a triple-digit clip.

The accounting is not the only difference with ENTU and VRSN however. VRSN is just much better positioned as its certificates own 25 of the top 25 e*commerce sites on the web. VRSN is a $200-$300 stock in the making.
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