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Technology Stocks : Intel Corporation (INTC)
INTC 37.81-4.3%Dec 12 9:30 AM EST
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To: BelowTheCrowd who wrote (142850)9/5/2001 7:07:54 PM
From: Road Walker  Read Replies (1) of 186894
 
Michael,

re: Distributors usually have price protection clauses. That's why Intel won't recognize the revenue until the distributor sells the goods.

Yes, but Amy's question was - could Intel recognize revenue, and then have returned goods. If they don't recognize the revenue until the item is sold from the distributor, then there is no risk that they would later have to unrecognize the revenue. Because the item in inventory at the distributor doesn't have a fixed price until it is sold, there is no risk to Intel on the revenue side.

John
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