Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Microcap & Penny Stocks : MYSYF: Mercury Scheduling Systems (software) -- Ignore unavailable to you. Want to Upgrade?

To: Marshall who wrote (3)	3/11/2000 4:11:00 PM
From: WTSherman	Read Replies (1) \| Respond to of 23

Marshall, there is the possibility that they are accounting for engineering expenses by amortizing them into the cost of sales. This is highly unusual for a s/w company(at least in the U.S.). The $18K R&D expense isn't even enough to pay one full time senior s/w engineer. The odd part about this is that if they were really considering themselves as an R&D company it wouldn't make sense for them to amortize the engineering costs into the cost of sales. 95% of s/w company's write off all product engineering as it occurs. This is what makes their margins so high when they sell products. The danger with amortizing the expense into cost of sales is that you have to guess what level sales will be. If you are wrong you have some major costs that have to be recovered.