SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Network Associates (NET)
NET 232.87+3.1%Nov 7 9:30 AM EST
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Edwarda who wrote (5705)8/18/1999 12:24:00 PM
From: Chuzzlewit  Read Replies (3) of 6021
 
Well, your challenge to me laid out a pretty bullish scenario, and one with which I am not that comfortable. But if you are correct, then we should see an increase in the liability account "deferred revenues".

[For those on this thread who are not familiar with the term, it refers to prepayments made to the company for product and services not yet rendered. Deferred revenues are a good way to see the future, and an unexpected drop is a major negative. The reason for my bearish stance on the company is that the deferred revenues decreased last quarter by about $43MM. That decrease was greater than the sales booked, which means that there were net order cancellations of at least $18 MM, assuming that all of the revenue booked came from deferred revenues.]

But, given the fact that you insist on a bullish scenario, I must acquiesce and forecast that deferred revenues will increase by about $20MM (I'm really gagging on that one!).

The one change I think I will make to your forecast is that depreciation and amortization will be about $20MM.

May I assume that you did not include a non-cash charge of around $4.2MM interest on convertible notes in your forecast?

In my next post I will present a cash flow projection based on the forgoing considerations.

TTFN,
CTC
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News