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Technology Stocks : MSFT Internet Explorer vs. NSCP Navigator
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To: Gerald R. Lampton who wrote (3265)11/21/1996 2:17:00 AM
From: Reginald Middleton   of 24154
 
In an unbiased way, they are simply putting some money away for a rainy day. If they recognize all revenues as they are earned, significant spikes can occur which could tend to dissappoint analyst/investor expectations on the downswing. By deferring revenues over a defined time period, those spikes are smoothed out and revenue appears to be more consistent.
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