<<I believe that Ancor is handling test bed revenue correctly. Some OEMs purchase the product outright, and those revenues are recognized when they occur. Other OEMs want loaner equipment, and Ancor is NOT recognizing those as revenue.>>
Craig,
Some more on the subject. From Ancor's annual report...
(from Note 1 to Financial Statements)
<<Revenue Recognition:
Revenue on firm customer orders is generally recognized at the time product is shipped or services are provided. Product shipped for customer evaluation is recorded as consigned inventory. In certain circumstances during 1996 and 1995, revenue was recognized upon completion of production under specific contractual arrangements for billing and delivery. The Company provides an allowance for product returns based on management's periodic assessment of the need for such an allowance.>>
According to Note 3 to Financial Statements...
<<Inventories on December 31, 1997 consisted of
Raw Materials... 2,398,066
Finished goods consigned
to customers and others... 527,078
Finished goods... 663,500
Reserve for obsolescence... (1,094,922)
Total... 2,493,722>>
Reserve remains the same through Q1 (?) and Inventories as of March 31 stand at 3,188,521. Of course this number is already stale because we know Ancor has sold 1M gigamathings in April. I wonder just how fast Ancor could(can) ramp production if(when) it had(has) to?
BTW. Congrats on having post 16,000. You deserve it! (whatever that means <g>)
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