PEGA - Pegasystems Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PEGA - Pegasystems

PEGA 59.12

+0.3%

Nov 7 3:59 PM EST

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Bill Harmond who wrote (124)	8/7/1997 3:12:00 PM
From: Mark B.	of 504

You're WRONG about the impact on earnings by a more appropriate accounting measure. This company is getting paid over a 5 year period but recognizing ALL of the revenue upfront (using a discount rate to present value the cash flows). Think about it this way: I sign a deal that will pay me $200K per year for 5 years and record AS REVENUE TODAY roughly $700,000. I think it takes some Chutzpah for this company to have a deferred revenue line on their b/s given their liberal accounting policy. Interestingly enough, they went online with a new client on the last day of the previous quarter. Do you think this was a coincidence or an opportunity for the company to recognize the revenue from that sale during the quarter? You might want to compare PEGA's accounting policy and number of new client announcements to Siebel systems to get a comparative valuation. Siebel has many more customers or trial customers in a much wider variety of industries than PEGA.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next