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: Hungry Investor who wrote (932)	4/4/2000 1:32:00 AM
From: Hectorite	Read Replies (1) of 1138

Folks, There is an piece on Radiowallstreet.com by an analyst, William Gramas, who talked with LGTO management today. (To listen, Go to the site search on ticker and pick from the list) Anyway, he explains the mysterious "side agreements" were orders booked to resellers with an option to return the product, against management policy. Salesmen desperate to make their quota I guess. The 7M revenue will have to come out of the Q4 and be rebooked as contingency revenue. It is possible that more of the funky orders might be uncovered because the sales reps in question were working for the company up to today (when they were fired) so some Q1 revenues could be affected as well. It is not clear if such effects are calculated into the ~55M guidance given today. These reclassified revenues might still be collectable. If you believe LGTO's products are demand, as I do, I don't see why a reseller would return them. Therefore the 7M + whatever-they-did-this-Q revenue may well show up in later quarters.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next