Zeev, re your comment "One of my concerns is the relatively high DOS reflected in almost a full quarter of sales reflected in Accts receivable, that often is an indication of "channel stuffing", meaning that possibly a chunk of the Christmas bulge might already be reflected in the last quarter's top line. That would be unusual in the era of "on time inventories", but why are DOS at close to 90 days?"
I'm assuming that's a typo, i.e., you mean DSO (days sales outstanding) rather than DOS? If so, I think everyone would appreciate further comment on this as a sudden increase in DSO is very, very bad news about 98% of the time.
Citrix, for example, reported a DSO surge about five months ago and claimed that everything was under control, simply a matter of shifting from shrink-wrapped sales to software via electronic delivery, a little channel overlap here and there doncha know, and all would be well in the morning. Well, their CEO/CFO team is now history, their market cap is a sliver of its former self, and shareholders are still wondering what freight train ran them over. DSO is an extremely important metric--can anyone provide further insight to SNDK's situation? regards, mike doyle |
