Kat, I modified my post a little so re-read it.
First, I don't know how they are recording the transaction since it only started a month or two ago and we will need the 10Q to figure out what is going on, and we might not be able to tell anyway. But it should be a financing lease - so sale, up front and associated profit reflected up front, but with a portion of the monthly $50 payment allocated to internet revenue. Of course a portion of the $50 payment will also be interest income to be offset by cost of financing.
I don't know if they are off loading these financing leases or setting up a financing sub. Hell, I don't even know what happens to the box at the end of the "lease" - I think you probably turn it into the local scrap electronics dealer to salvage the circuit gold and silver. -g-
Some work to do here. In any event, these are definitely sub-$1,000 boxes, financing is not exactly a high tech business deserving XX multiples, maybe they figure they can call themselves an AOL internet business and fly high?
Regards, DWW |
