Larry, first it is not a law, but an accounting board recommendation. Second, it was not accepted yet. Third, it applies only to products, like semi equip, in which there is a great lag between shipment and equipment acceptance by the fabs. By the way, AMAT already partially follows these rules and thus their DSO increased to 76.5 (I estimated at the time of those arguments that full implementation would add another 10 days), there is no reason why AMAT would have lower DSO than SNDK, because of the fact that it takes quite sometime to ship and accept" AMAT's equipment. AMAT also often need to place equipment in place "conditionally", further lengthening their DSO (or increasing their inventories), but their inventories in the last quarter were only at 50% of sales, excellent "cash management" IMTO.
Zeev |
