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Technology Stocks : DIGL... Digital Lightwave.... Making Waves....
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To: Mahesh who wrote (300)1/23/1998 2:42:00 PM
From: squirrel  Read Replies (2) of 934
 
Firm backlog and deferred revenue of $6.0 million

Deferred revenue is the inventory, sitting on the distributors' shelves, which apparently can be returned at the distributors' discretion or remain unpaid until it is sold to the end user.

Firm backlog to me would represent booked orders (but keep in mind these might be orders from these same distributors and end up as deferred revenue) that have yet to be shipped.

Anticipated but unrealized fourth quarter orders $6.8 million (again these might be orders from distributors).

If they had realized these Q4 orders, does this press release tell us that the $6.0 million would have been stated higher to $12.8 million. I do not get a sense that these orders (the $6.8 million) would have made it to the income statement Q4. In other words, my interpretation opens the possibility that the future sales growth may be as bleak as the ugly past.

They chopped off $9.5 million in revenue for the preceding two qtrs and now are going to report approx. $4.7 million in Q4 revenue.

"We also plan to REDUCE our rate of recruitment of other staff and expenses in order to better align with the rate of top line growth we have been experiencing" This statement refers to the "revised" sales figures.

The figures are muddy and they smell. To anybody out there still wrestling with this one, be cautious and good luck!
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