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Technology Stocks : Wind River going up, up, up! -- Ignore unavailable to you. Want to Upgrade?

To: JMD who wrote (7936)	6/7/2000 7:45:00 PM
From: John Carragher	Respond to of 10309

Wind River Sys To Hike Authorized Shrs To 325M From 125M Dow Jones Newswires WASHINGTON -- Wind River Systems Inc. (WIND) is asking its shareholders to vote on a proposal to increase the number of its outstanding common shares to 325 million from 125 million, according to a preliminary proxy statement filed with the Securities and Exchange Commission. Shareholders will vote on the proposal at the company's annual meeting on July 26 in Alameda, Calif. Wind River said in the filing late Tuesday that the additional shares may be used for various purposes including, raising capital, providing equity incentives to employees, officers or directors, establishing strategic relationships with other companies and expanding the company's business or product lines through the acquisition of other businesses or products. The additional shares may also be used by the company to oppose a hostile takeover attempt or delay or prevent changes in control or management of the company, according to the filing. Wind River designs, makes and sells software development tools for embedded applications in the Internet, telecommunication, data communications, and the medical sector among other markets.

To: JMD who wrote (7936)	6/7/2000 9:31:00 PM
From: cfoe	Read Replies (2) \| Respond to of 10309

Mike - You arrive at the correct conclusion, but your reasoning is not fully there. As you say,deferred revenue is a liability and is sometimes called "unearned revenue." Basically revenue is deferred when value is received (cash) for value that has not yet been delivered (product). It could be the product has been physically delivered but not yet accepted. It could be a subscription for future services to be delivered. If the product includes some future services (like maintenance) and part of the purchase price can be identified as applicable to that future service, this revenue would also qualify for deferral. This is about as much as I remember from my accounting days of many (many!) years ago. <ggg>