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Technology Stocks : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: khacha who wrote (4512)	3/4/2001 2:36:15 PM
From: Lee L.	Respond to of 6974

In terms of result, it is easy for a customer to postpone a buy for just one month, and then they will be booking the expense already in the next quarter. That would make the customer's earning look better, and Siebel's earning look worse. Sebl would book an order as revenue once the buyer provided Sebl with a signed order-form (a legal contract). The buyer, however, would not expense this purchase at the same time. Instead, this would be treated as capital expenditure that would begin depreciating after deployment months later. So, a Sebl purchase should not have an impact on a Company's earnings for some time. A company would delay/eliminate a large purchase like Sebl to reduce capital expenditures especially if the company had cash flow concerns.