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Technology Stocks : Oracle Corporation (ORCL)
ORCL 198.84-10.9%Dec 11 3:59 PM EST

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To: Marq Spencer who wrote (8269)9/10/1998 9:24:00 PM
From: Wheats  Read Replies (1) of 19080
 
Actually the Club was delayed last year, as well -- so we are looking at apples to apples for both years. I know because I was a guest at that event and 6 consecutive prior ones. The point is that in 4Q they go all out, and then seem disoriented / exhausted for the next quarter, and preoccupied with the "musical chairs." They go all out in 4Q not only to meet their number but the accelerators kick in (a good motivator), and there is no assurance that if business slides into the next QTR the rep will have the same territory. Hence, all the reps efforts might perhaps benefit someone else (another good motivator to close business quickly). Let me ask you a question, do all reps have their territories and quotas as of today for FY99? If not, perhaps performance is affected don't you think?

As far as shifting the Club expenses from 1Q to 2Q; this simply is not the case. Good accounting practices (proper matching Rev / Exp), that I believe Oracle practices, call for the expenses to be accrued over the entire year. FY98 expenses included the Club.
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