MicroStrategy Inc. (MSTR) Message Board

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Technology Stocks : MicroStrategy Inc. (MSTR)

MSTR 241.96

+2.0%

Nov 7 9:30 AM EST

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To: George Papadopoulos who wrote (515)	3/22/2000 8:33:00 PM
From: JMD	Read Replies (2) of 717

Strongly agree with you George--GAAP is clear as mud on software revenue recognition. This is particularly true for long term, complex enterprise software installations. I am neither defending nor supporting MSTR, as I have no knowledge of the factual background. But it is certainly possible to have an honest disagreement in attempting to apply the guidelines. Microsoft is famous (infamous?) for lopping off a healthy percentage of software license sales and plopping the dough into 'deferred revenues'. That number however has now grown to a size where some analysts suspect that MSFT can reach into the cookie jar and arbitrarily realize the money (take it in to current revenues) to smooth over an otherwise weak quarter. Which in turn leads to criticsm for being overly conservative, a rather bizarre result. In any event, this stuff ain't filing a 1040EZ and my opinion is that judgement about MSTR's approach should be withheld pending a further look. JMD

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