Shane, your enthusiasm as usual does you great credit, but a little more objectivity (and fact-checking) may help you from time to time.
am I the only one who realizes that the increase in deferred revenues from a run-rate of 0.6m to a run-rate of 2.0m is a significant accomplishment
Deferred revenues come from several sources, but have a major characteristic - they are a balance sheet liability that, by definition, has to be offset by a balance sheet asset. Usually this is cash - a customer has paid for a product or service, but has not received all the associated value. Commonly, this is "maintenance revenue", paid annually in advance, but released proportionately into the P&L in future quarters, or project services revenue where the work has not been completed. Next most common is licensing agreements that span quarters - or years - when the same rules apply.
On the evidence, it would seem that the bulk of the addition to deferred revenues comes from licensing deals with other software companies - nothing wrong with that, Visigenic began life exactly in this space. It is, however, slightly at odds with the Inprise "enterprise" thrust, since it is one stage removed from a direct customer transaction. If you check your history, you will find that Visigenic themselves were trying to transition themselves out of reliance on this form of business at the time they were acquired.
Does anyone perhaps think that the lack of growth in Japan just could have been caused by the fact that the company has not yet implemented the direct sales force there and that the company there is still the Old Development Window Tools Borland and not the new Enterprise Company Inprise.
Few, I believe, would think this. Check inprise.com
I am always amazed at how short-sighted the market can be.
Shane, be careful.
david |
