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Technology Stocks : LEGATO SYSTEMS LGTO -- Ignore unavailable to you. Want to Upgrade?

To: Chuzzlewit who wrote (699)	1/25/2000 8:59:00 AM
From: Box-By-The-Riviera™	Respond to of 1138

As always..... a gentleman....and a scholar at forensic accounting. Best, J

To: Chuzzlewit who wrote (699)	1/25/2000 9:45:00 AM
From: Edwarda	Read Replies (1) \| Respond to of 1138

As I posted earlier, one of the things that is giving me concern is the market's penchant for accelerating revenue growth. Up until now, deferred revenues consisted of subscription upgrade contracts and services in the process of being fulfilled over a 12-month period. This is a change. If resellers are viewed by auditors as distributors and if deals with companies such as Storage Networks are booked as deferred as well, the accounting may be more conservative, but how will the market look at the revenue stream ahead? Are we looking at a potential valuation compression for not only LGTO but a number of other software companies as well?