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William: Until your post mentioned that Wang referred to the possible problem of 3 instead of 5 years deals in the Lou Dobbs interview, this subject was noticeable by its absence in his comments at the AGM. Given the frank and forthright nature of his comments, it is difficult to believe that he deliberately dodged it. I would have thought, therefore, that it was not mentioned because it was not such a big deal. I have not heard the interview comments, but could it be possible that Wang is saying that the possible slow-down in orders from clients affected by Asia and YK2 will show up, not in outright postponement of orders, but in shorter license agreements, and because CA accounts for agreements upfront, then revenues will be affected, should this happen.
You will recall that analysts made quite a fuss about this matter and it is fair to think that the excessive portion of the fall in stock price was caused, in large part, by analysts comments. It has also given rise to a good deal of unkind comment about cooking the books and possible accounting revisions.
Victor |
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