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Technology Stocks : GX Investors Thread

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To: Ally who wrote (91)8/23/2001 9:40:53 AM
From: BWAC   of 586
 
<Follow cash, not gaap (easily manipulated). >

Here we go yet again. Follow both.

And note that the easily manipulated GAAP number was LOWER than the cash number. Why? Because as you said, The cash number recognizes the deferred revenue immediately, the GAAP number recognizes that revenue as it is earned over the life of the contract. In the quarter GX actually provides the service, matched against the expenses related to that particular service.

So which is closer to what actually happens in any given quarter?
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