PEGA - Pegasystems Message Board

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Technology Stocks : PEGA - Pegasystems

PEGA 58.97

-1.0%

2:57 PM EST

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To: Clam Clam who wrote (220)	10/30/1997 3:06:00 PM
From: Trader Dave	Read Replies (1) of 504

Company is far older than the other cis vendors and has north of a 90% renewal rate. How can you say they should recognize nothing until year 5 when they have a committed contract and are collecting the cash on a monthly basis? I think your stance is a little strong. Setting the FDC contract aside, the company's revenue generation and accounting policies have worked since 1983. The FDC development appears to be an accounting issue, not a cash collection, customer acceptance, business fundamental issue. Hard for the CFO to take a stance when the CEO owns 70% of the company. I think the auditors are at fault for being inconsistent. I agree that for all software companies, it would be better to recognize on seat deployment or full acceptance. But Pega's architecture requires no change to the underlying code for deployment. (It's an object oriented rules-based engine.) I think you could argue that they have less deployment risk than some of our other friends. TD

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