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To: John Bloxom who wrote (11277)	12/9/1997 10:22:00 PM
From: Elroy Jetson	Read Replies (1) of 25960

The accounting for a software firm is different than for a law firm. At a law firm you recognize income either as you bill for services or as you are paid. At a software firm like Oracle, income is recognized just as soon as the contract is signed. Even though it may take many months to install the software and perhaps years to support it, the software profit is recognized immeadiately. I have friends who are in sales at similar enterprise software firms. The pressure to meet contract signing targets by each quarter end is incredible. Virtually no expense is spared in closing those contracts during the last week. Thus, it does not suprise me at all that the events of the past few weeks would drmatically impact Oracle's results this quarter. Since it is uncertain which contracts will be signed and what size they will be, it is understandable that Oracle was not hedged for the decline in Southeast Asian currencies. Thus a 15% income growth became a 1% income growth. I don't neccessarily see a connection between software and semi-equipt, but I do think Oracle is an early warning for investors in other software firms.

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