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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year
PSFT 0.00010000.0%Oct 29 5:00 PM EST

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To: Melissa McAuliffe who wrote (258)3/20/1998 3:53:00 PM
From: Mr Logic  Read Replies (1) of 4509
 
Revenue recognition, getting OT:
Melissa, it was largely 'stuffing the channel'. It is legitimate to do this but it is not a good practice. It is a way of making the quarterly numbers. A lot of it would be done at a local level. The problem is, when the product does not get used sold on, the next quarter is worse and the problem is compounded. I guess you know this with your background.
One concern for SEBL was that their CFO Howard Graham was IFMX CFO for Informix during that 90-96 period. But I think that as the problem can be localised (look at Sybase in Japan) it doesn't reflect as much as I first thought on Graham.
I heard that PSFT is not bad on rev recognition but nobody really knows.
Please allow me a small sigh of relief that PSFT has stopped rocketing up!
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