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.

Strategies & Market Trends : Gorilla and King Portfolio Candidates -- Ignore unavailable to you. Want to Upgrade?

To: mtnlady who wrote (33873)	10/27/2000 1:14:46 AM
From: kumar	Read Replies (1) \| Respond to of 54805

wonder why NT can't book revenue when they sell the product and then book the revenue from the service side of the picture as the project is completed it is reasonably simple to understand if u step out of the "investor mode". - customer agrees to pay supplier to provide a solution to a problem - supplier may have products + services + 3rd party components in the solution. - customer (typically) would agree on milestone payments - revenue recognized, as an when milestone payments come in - if during the project, it turns into a pile of crap, all bets are off. (backing off previously recognized revenues is not out of bounds in this scenario). cheers, kumar@beentheredonethat.org

To: mtnlady who wrote (33873)	10/27/2000 8:47:14 AM
From: 100cfm	Respond to of 54805

I wonder why NT can't book revenue when they sell the product and then book the revenue from the service side of the picture as the project is completed. I think they must probably do a partial billing when the equipment hits the installation site but no one is going to pay in full till it's up and running, if it's a multi month job they probably get progress payments according to percent complete.

To: mtnlady who wrote (33873)	10/27/2000 9:45:02 AM
From: DownSouth	Respond to of 54805

I wonder why NT can't book revenue when they sell the product and then book the revenue from the service side of the picture as the project is completed. Almost always the invoicing for product cannot be done until the product (hardware/software) has been installed and "accepted" by the customer. Booking of services may be done on a monthly basis, if the services contract is based hours worked. If the services contract is based on successful milestones, then those invoices will not be sent until the customer agrees that the milestone was reached. Sometimes that milestone is "product passed acceptance testing", so the whole thing is billed at the end of the project. CSCO's current and past project environments are not that different from this one. In both environments, the first installations of new technology are often problematic as the customer is cautious and the vendor hits unanticipated problems in each new environment. Once the customer has implemented a successful install, then the time from order to revenue decreases greatly as third parties and customer technicians take over the installation tasks and CSCO just ships and bills its products.