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Technology Stocks : Compaq

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To: hpeace who wrote (13379)1/13/1998 11:24:00 AM
From: RetiredNow  Read Replies (1) of 97611
 
Steve, I don't know CPQ specifically, but any other computer company would recognize sales as the items were shipped. So even though your formula may be correct isn't it possible for CPQ to trump up sales by shipping large quantities at quarter end and recording those as sales? This would just mean accelerating planned shipments a bit.

I could be wrong, though, because I have also heard in the world of accounting that companies like CPQ do not recognize the revenue until the retail store has made the sale. So sales are almost treated as if they were on consignment. I hope this latter explanation is the case, because I'm up to my neck in CPQ shares.

Good luck.
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