LEGATO SYSTEMS LGTO Message Board

STOCKTALK

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 : LEGATO SYSTEMS LGTO

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Pink Minion who wrote (718)	1/26/2000 12:58:00 PM
From: Chuzzlewit	of 1138

XD, Am I wrong? Just an ex-geek that took one class in accounting. No, you are incorrect. The effect persists so long as the accounting rules requires that sell-through to the end user is required for the revenue to be recognized and growth of orders continues because a portion of the revenue recognition will always be deferred. But here's an oddity you should also consider. If orders decline then revenues are higher than orders and it looks like the top-line growth is higher than the rate of receipt of orders. This is what happened to BMCS. That's why it is very important to watch deferred revenues. They are the window to future revenues and provide a level of visibility. TTFN, CTC

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next