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Technology Stocks : Viasoft is an excellent stock, but what about the company?

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To: Philip H. Lee who wrote (136)1/26/1997 4:15:00 PM
From: Roger A. Babb   of 169
 
Philip, the comparison of VIAS accounting methods to MSFT methods is really a study in contrasts. MSFT used deferrals to push current income to the future so as to smooth out future dips. The VIAS methods are inflating current income. I stand by my earlier statement that if you net out the 14.2 million increase in AR from the 19.8 million revenue cash revenues for the quarter were only 5.6 million.

MSFT does the opposite, iee booking deferred revenue which makes reported revenue smaller than the actual cash revenue.

Anybody else have a perspective on this?

Roger
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