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Technology Stocks : Network Associates (NET) -- Ignore unavailable to you. Want to Upgrade?

To: Just_Observing who wrote (5592)	7/28/1999 9:26:00 AM
From: Raymond Clutts	Read Replies (1) \| Respond to of 6021

This is another clarification on NETA's second quarter revenues v. earnings that is now running on today's edition of The Street.com. Warm Fuzzies Off the Auction Block at eBay By Adam Lashinsky Silicon Valley Columnist 7/28/99 7:00 AM Of Run Rates, Receivables and Revenue Most people in most circumstances use revenue and sales interchangeably. And most of the time that's OK. But when it comes to a software company, like Network Associates (NETA:Nasdaq), one needs to be careful with the lingo. An item here Friday about the Santa Clara, Calif.-based company, which makes software that protects networks and computers from viruses and other maladies, unfairly characterized it as having a $100 million run rate because it recorded $25 million in revenue in the second quarter. Network Associates' second-quarter revenue was $25 million, but that's because it was unstuffing a distribution channel of already sold software. Bookings for the quarter, which the company discussed on its July 22 conference call but not in its press release, were about $200 million. This means that although the company recognized revenue of $25 million, it wrote orders for sales of nearly nine times that. Lehman Brothers estimates the company will record revenue for 1999 of about $681 million. That's a far cry from the former billion-dollar goal, but far more than the $100-million jab in this space Friday. -------------------------------------------------------------------------------- ET