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Technology Stocks : MRV Communications (MRVC) opinions?
MRVC 9.975-0.1%Aug 15 5:00 PM EST

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To: Andrew Furst who wrote (7934)3/30/1998 1:34:00 AM
From: Sowbug   of 42804
 
Other companies might actually wait until well after payment has been received to recognize revenue. For example, a company which allows customers to return merchandise within a 90 day period might wait the full 90 days before booking it as "sold" (revenue), even though the product has been shipped and payment received.

Microsoft is even more conservative, allocating a certain percentage of monies received to the product, and some to the continuing obligation to provide technical support. It's one reason why investors love the stock -- if MSFT recognized revenue as it were received, the company would be something like six to nine months ahead of its current position in growth. This deferred recognition also helps smooth out volatile periods of high/low revenue.

P.S. Sector, switch to accrual. It's better.
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