Dale,
Did you listen to the conference call? The CFO remarked that there were no capitalized costs for e.support as the company had taken the costs as a charge in a prior qtr. If there are any more capitalized costs, I would expect them to come from new products being released. According to page 17 of the annual report: " Research and development costs are amortized using the stright-line method, commencing when the related products are available for sale, over the estimated useful lives of the related products. "
" Research and development expenses resulting from the design, development and testing of new software maintenance and enhancement costs are expensed as incurre, until technological feasibility has been estamblished. Thereafter, certain costs such as coding and testing are capitalized in accordance with Statement of Financial Accounting Standards No 86. "
** The balance sheet lists Software, development costs, net other assets as $31,169. I would assume that these costs are for new products not e.support as I noticed that both in the conference call and the 2nd qtr, TSSW took a small charge for the remaining software development costs. Thus, any e.support contract would have a good profit margin IMO.
DC |
