Well, some components of the deals, like maintenance, will be recognized over the next 12 months, and consulting servics will be recognized as they are deployed over the next n-months.
But, product should be shipped on a lot of these deals, especially considering that the deals were probably signed earlier, and thus some of the revenue is likely to be already recognized.
I don't believe that ROSS recognizes the product revenue when it is fully implemented - I think it happens when they ship to customer. Actually, "fully implemented" could take a year or two, and these types of projects are always continuously moving in some direction or another, so they must recognize on shipment.
I'd figure that 50 - 60% of a deal value is in the product as a rough estimate.
I don't know if they recognize maintenance quarterly or monthly, but you can recognize it at the start of a period, so if they recognize it quarterly, that would be 1/4 of about 15% of the software, so in some cases, figure another 4% or so of the deal upfront. If they have some sort of clause as to when maintenance kicks in (i.e. clock doesn't start for 90 days, or doesn't start until system is up and running) then forget that. But, I would guess that for expanded deals, where they are just adding more seats or some other module, it might start right away.
These are guesses, and might be interesting to ask the company about this - shouldn't be confidential. |
