Hi Jake,
You wrote: It depends how NTAP recognizes their revenue.
I snipped this from NTAP's last 10-K:
Revenue Recognition -- In accordance with Statement of Position ("SOP")
97-2, "Software Revenue Recognition," we recognize revenue when persuasive
evidence of an arrangement exists, delivery has occurred or services have been
rendered, the fee is fixed or determinable, collectibility is probable and
vendor specific objective evidence exists to allocate a portion of the total fee
to any undelivered elements of the arrangement. This generally occurs at the
time of shipment, at which time we also record estimated product return and
warranty reserves. Revenues from software subscriptions, which entitle customers
to software updates, including bug fixes, patch releases and major revisions,
and services are recognized over the terms of the related contractual periods
and were less than 10% of net sales in fiscal 2000, 1999 and 1998.
Do you think it's a stretch to assume that the Deferred Revenue account covers (among other things, like maintenance contracts) products that have been delivered but are being leased by the customer?
Phil |
