VVUS: VIVUS INC. (NASDAQ) Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Biotech / Medical : VVUS: VIVUS INC. (NASDAQ)

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Chris Delap who wrote (5281)	2/4/1998 1:26:00 AM
From: Whipsaw	Read Replies (1) of 23519

In 5281, you wrote: "Vivus accepts the return of outdated full or partial boxes." ...This also means that Vivus can't count shipped product as sales, this may not be significant. Vivus does recognize the revenue when the product is shipped. Any returns of outdated merchandise would be booked in a contra-revenue account in the quarter it was returned. In the 10-Q, Vivus does not show this amount separately, but it is a component of the "Net product sales" item on the income statement. I would not expect returns to be a significant amount, but it is very important to realize that revenue is recognized in the quarter that product is shipped. This is why some companies pay their shippers to keep trucks available at their shipping dock right up until midnight on the last day of the quarter. If it's on the truck by midnight, it's revenue for that quarter. (I'm not an accountant, so I'd appreciate it if the CPAs out there could correct any inaccuracies.) --Whippy

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next