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Technology Stocks : Siebel Systems (SEBL) - strong buy?

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To: j_b who wrote (1971)7/21/1998 12:54:00 PM
From: Melissa McAuliffe  Read Replies (2) of 6974
 
j b, No customer pays up front all in cash. Therefore there is definitely a correlation between a/r and deferred revenue. As deferred revenue increases the only corresponding offsets are to either cash or receivables. At least these are the only offsets I can think of.

If, e.g. a customer paid 20% down with the contract the company would book that to cash and the remaiiniing 80% to receivables. Just because rev isn't able to recognized doesn't mean it doesn't become part of the balance sheet.
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