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Technology Stocks : Gemstar Intl (GMST) -- Ignore unavailable to you. Want to Upgrade?

To: pompsander who wrote (1953)	2/11/2000 9:03:00 AM
From: 100cfm	Read Replies (2) \| Respond to of 6516

We believe the company could have exceeded our estimate without this payment by exercising revenue-recognition flexibility without jeopardizing future results. Licensing revenue is recognized when the device manufacturer (TV, VCR maker) notifies Gemstar of the number of units shipped in a given period. The company quoted an installed base of two million units, which we believe understates the unit growth since Gemstar last audited its licensing customers. We believe the fact that Gemstar received an $18-million payment effectively delayed recognition of other licensing revenue, lending visibility to future estimates. When I first read this I said what the hell does "revenue-flexiblity recognition" mean. Did he say if they stretched the numbers they would have worked, I was not comfortable with that statement. So I'm glad they decided to use the 18mm. Then I wondered why would they let the 18mm delay revenue recognition, then it hit me. They are sandbagging the number until Gov. approval. Keeping a low profile is a good idea. Look for a blowout in this quarter's earnings when they report in may after late april merger approval. All just MHO of course. 100