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Strategies & Market Trends : Group Therapy -- Ignore unavailable to you. Want to Upgrade?

To: Duane L. Olson who wrote (1461)	6/28/2000 3:56:00 PM
From: Logain Ablar	Read Replies (2) \| Respond to of 4564

Duane: Back in December the SEC issued a bulletin 101 on revenue recognition. This was basically a restatement of prior APB's and FAS standards. However they also gave some guidance in certain situations via questions and answerers. In one of these Q&A's an issue was raised where companies that sell equipment would have to delay recognition until the customer "accepted" the equipment. This is different where the majority of equipment manufacturers record the sale on the shipping date. This will result in a one time pushout of revenue in the quarter enacted. Implementaion was to be in March quarter and it was pushed to June quarter. It is now delayed till 4th quarter reporting. The SEC has indicated they plan to clarify the "acceptance" issue. As an example of what it can do to a semi equipment look @ COHU. They implemented in 1st quarter. Tim