Sycamore Networks Inc-(SCMR) Message Board

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Technology Stocks : Sycamore Networks Inc-(SCMR)

SCMR 0.226

0.0%

Nov 30 4:00 PM EST

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To: James Fulop who wrote (1629)	11/15/2000 8:12:45 PM
From: Johnny Canuck	Read Replies (3) of 2249

I'll take a stab at it. Linearity usually means how evenly spread out orders were in the quarter. A back end loaded quarter is not so good as the company does not know if they will make the revenue and EPS number till the very last few days of the quarter. This make for volatile earnings. DSO's are calculated by taking the amount of receivables (ie... the amount of money they are owed) and dividing by the number of selling days in the quarter. Since the orders were very evenly spread out and the customers paid on a timely basis, the amount of receivables were very low. So you get low DSO's. The real question may be is the DSO's so low due to the fact that SCMR was paid indirectly through their own money due to the vendor financing or is it due to the quality of their customers? I am just trying to play devils advocate here as I don't have anymore specifics than what was on the call. The DSO's were extremely low though. From memory, even CSCO does not have DSO's that low. This is either great timing of sales, installation and acceptance of equipment with quality customers or a problem just starting to develop.

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