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Technology Stocks : Lucent Technologies (LU)
LU 2.560-0.4%3:59 PM EST
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To: Mr.Fun who wrote (10651)10/25/1999 2:29:00 PM
From: The Phoenix  Read Replies (3) of 21876
 
Sounds like lots of buerocracy and red tape to me. But as I said before I have no reason to doubt that your assessment is correct. Sounds pretty painful and realizing revenue on acceptance rather than on shipment puts the customer in control of LU's ability to make financials and puts more pressure on service organization build up which is an expense with little return. I understand that this is a conservative approach but it seems that LU has to have more confindence in their ability to deliver and install a solution. Perhaps a better question - or a more enlightening question is how many returns does LU get? If the answer is very few then realizing revenue on shipment makes sense...and takes pressue off of the need to excesively build out support organizations...and perhaps even allow LU to use more 3rd party support services. The end result will be to reduce contract time, reduce installation expense and monitoring, and reduce support organization expense.

OG
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