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Technology Stocks : Sycamore Networks Inc-(SCMR) -- Ignore unavailable to you. Want to Upgrade?

To: James Fulop who wrote (1629)	11/15/2000 11:48:11 AM
From: manohar kanuri	Respond to of 2249

Now that you mention it, I'm not quite sure. I remember thinking that it was stating the obvious, sort of, to note that it would go up as foreign sales went up since they usually take more time to cough up. Maybe just management-speak that reiterates the nature of the measure itself? Sorry couldn't be much help there...

To: James Fulop who wrote (1629)	11/15/2000 8:12:45 PM
From: Johnny Canuck	Read Replies (3) \| Respond to of 2249

I'll take a stab at it. Linearity usually means how evenly spread out orders were in the quarter. A back end loaded quarter is not so good as the company does not know if they will make the revenue and EPS number till the very last few days of the quarter. This make for volatile earnings. DSO's are calculated by taking the amount of receivables (ie... the amount of money they are owed) and dividing by the number of selling days in the quarter. Since the orders were very evenly spread out and the customers paid on a timely basis, the amount of receivables were very low. So you get low DSO's. The real question may be is the DSO's so low due to the fact that SCMR was paid indirectly through their own money due to the vendor financing or is it due to the quality of their customers? I am just trying to play devils advocate here as I don't have anymore specifics than what was on the call. The DSO's were extremely low though. From memory, even CSCO does not have DSO's that low. This is either great timing of sales, installation and acceptance of equipment with quality customers or a problem just starting to develop.

To: James Fulop who wrote (1629)	11/19/2000 9:19:36 PM
From: Johnny Canuck	Read Replies (1) \| Respond to of 2249

Hi James, I just realized I gave you the wrong definition for DSO's. I don't know what I was thinking. DSO are calculated by: 1)Take the total sales for the quarter and dividing by the number of selling days in the quarter. That give you the average value of sales per day in the quarter. 2) Now take the receivables in the Q and divide by the amount you just calculated. That gives you the DSO. The calculation is an attempt to normalize the receivables amount so you can compare it against quarters that have more or fewer selling days than the current quarter.