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To: Glenn D. Rudolph who wrote (115151)	1/12/2001 11:30:44 AM
From: Danny	Read Replies (2) \| Respond to of 164684

Someone, please help me to understand ARBA's earning projection. ARBA announced that their Q2 rev would be slightly higher (than current estimation) at 180-185M range. At the same time, they also said that they would change the rev recognition model to recognize rev up front, instead of over the life time of the contract (ratable). Now, the question is: when will they start using that revenue model? Starting at Q2? If the answer is yes, I would say ARBA's so called upside projection is greatly overstated and misleading. Because whenever you start to recognize revenue up front, your revenue number on the earning report will become automatically higher, even without any real growth in order. What I am saying is, it is entirely possible that without the change of revenue policy, ARBA would probably have to "warn" the revenue decrease or much slower growth in Q2. Can anyone show me a link to ARBA's announcement on this revenue issue? Thanks