PSFT - Fiscal 1998 - Discussion for the next year Message Board

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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year

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Oct 29 5:00 PM EST

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To: Melissa McAuliffe who wrote (320)	3/27/1998 8:53:00 AM
From: Mr Logic	Read Replies (1) of 4509

Agree. No decent company would book contingent revenues. The way to manage the numbers is either to (a.) not book revenue on quarter-end deals, but book the quarter after - ie. delay a few days, longer than that is also getting naughty in rev recognition terms or, (b) deliberately make the revenue contingent on the books but make the contingency something under your control. Also a little naughty, but clean and unlikley to upset stockholders in the short term. Typically the sales rep will want no 'real' contingency as he should not get paid. As you know, the sales rep and their management want the maximum upfront, irrevocable revenue each quarter, hence the quarter end/year end deals.

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