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Technology Stocks : America On-Line (AOL)
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To: Duane Greg who wrote (32957)10/20/1999 6:40:00 PM
From: Tim-A.  Read Replies (1) of 41369
 
Duane, the ad backlog represents deals where a company makes, say, a 4 year commitment to buy $4M of advertising on AOL.

AOL isn't paid all that money in the first year so they can't take it as revenue (otherwise they'd have a gigantic accounts receivable number as well as major problems with the SEC).

So, the revenue is booked at $1M per year, or however the deal is structured, and they report the remainder as part of the backlog.

That's the way I read it, although I'm no accountant!
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