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Technology Stocks : Covad Communications - COVD
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To: ead10 who wrote (10463)5/9/2007 9:31:59 AM
From: Andre Williamson   of 10485
 
Do you think they set money aside each quarter in expectation? If that is how it's done then I'm sorry I picked on them

That is what was explained. Though at first glance I wondered why they'd account for it without knowing they'd pay them out, it made sense that they would: accounting principles are inherently supposed to be conservative. And to assume they wouldn't hit targets, they'd have to demonstrate a track record of failing to meet them.

Agree with you on how limited the cash burn really is/need be.

Andre
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