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Technology Stocks : Network Appliance -- Ignore unavailable to you. Want to Upgrade?


To: Danny Chan who wrote (4006)8/14/2000 11:59:56 PM
From: DownSouth  Read Replies (2) | Respond to of 10934
 
Let me interpret. Backlog is created by either or both of the following circumstances:

1. Product cannot be built and shipped because of manufacturing capacity problems, so it is booked but not billed yet.
2. Billing numbers have been met for the quarter, so additional product is not shipped this quarter, so it is booked but not billed.

A company likes to carry a backlog from quarter to quarter to help assure that some portion of the billing goal is "in the bag". The risk is that customer satisfaction will be effected negatively because their orders are not filled in a timely manner.

So the balance is to maintain a backlog without pissing off customers.