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.

Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Howard Armstrong who wrote (14084)	4/29/2000 4:05:00 AM
From: Dinesh	Respond to of 14631

Howard LGTO had a different problem. They booked some of their revenues too soon. For example, if you received a whole year's payment up front and need to make your books for this quarter, FASB tells you that you should book only 25% of the payment this qtr and put the remaining 75% under unearned revenue. LGTO I recall forgot some of these principals. Rising DSOs different kind of animal. Y2K may have to do something with it. Lots of companies had some accounting problems. For example, some of my vendors billed me this Feb everything since Jan/1999. Oh, what a fat bundle of timewasters. If the trend continues, then we may have some issues. Cash flow is lifeblood. Regards Dinesh

To: Howard Armstrong who wrote (14084)	4/29/2000 11:36:00 AM
From: M. Charles Swope	Respond to of 14631

Howard, I share your concerns. There may be benign reasons for the DSO increase but IFMX hasn't come forward with an explanation. Uncertainty is heavily penalized in the market. No news is not good news in this regard. Charlie

To: Howard Armstrong who wrote (14084)	5/2/2000 4:14:00 PM
From: Tathanka	Read Replies (1) \| Respond to of 14631

Howard, I took the liberty of submitting your post (what are DSOs, by the way?) to Michael Murphy (of the California Technology Stockletter) who responded as follows: I did talk to them about this. After the Ardent acquisition the receivables for 12/99 were restated up from $232 million to $267 million, so the 3/00 number of $249 million was a sequential decline in dollar terms, suggesting they aren't stuffing dot.coms. DSOs did go up because Q1 is the weak Q of the year, so the revenue number (the divisor) is as low as it gets. Even so, it is a yellow flag. Everyone will be watching for this number in June (both $ and DSO), so I expect Dexmier (as a former CFO) to put up a respecatble number. Informix doesn't sell that much to new dot.coms, anyway. Most of their customers are larger companies or specialized as in broadcasting. Would you be interested in our posting this Q&A to our www.hightechstocks.com message board, so other CTSL subs could see it? -----Original Message----- From: Mark Perry [mailto:tathanka@worldnet.att.net] Sent: Monday, May 01, 2000 12:03 PM To: Customer_service Subject: Informix Receivables Michael, Are you at all concerned about IFMX's receivables, i.e. booking revenue from overnight internet companies who won't be able to pay their bills. Check following post from Silicon Investor, if you have a second: