SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : Compaq

 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: rudedog who wrote (55493)4/3/1999 8:05:00 PM
From: rupert1  Read Replies (1) of 97611
 
rudedog: That Tandem revenue-in-hand will help. I'm assuming that when an order comes in for additional modules to a system already owned and operated by a client, and even before the modules have been manufactured, assembled, tested and tuned to the required service levels, the money has been paid. It is booked only when the product is certified for the client.

If the money was not paid "in advance" in this way, then the product might be a very heavy inventory item because not only would the modules hardware be on the books as inventory but so would the added value of the cost of assembling and testing (I have no idea how long this whole process would take and I'm assuming it would be significantly longer than the 5 days turnaround which is applicable to an order for PC's).

I don't pretend to understand the details but the principles are clear and interesting from your explanation.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext