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.

Technology Stocks : GX Investors Thread -- Ignore unavailable to you. Want to Upgrade?

To: Ally who wrote (91)	8/23/2001 9:40:53 AM
From: BWAC	Respond to of 586

<Follow cash, not gaap (easily manipulated). > Here we go yet again. Follow both. And note that the easily manipulated GAAP number was LOWER than the cash number. Why? Because as you said, The cash number recognizes the deferred revenue immediately, the GAAP number recognizes that revenue as it is earned over the life of the contract. In the quarter GX actually provides the service, matched against the expenses related to that particular service. So which is closer to what actually happens in any given quarter?

To: Ally who wrote (91)	8/23/2001 10:01:40 AM
From: KJ. Moy	Read Replies (1) \| Respond to of 586

Ally, thanks for the reply. You wrote: <<<KJ, no, the difference between cash and gaap revenue is "deferred revenue". Not much use now to look at proforma statements ... instead just focus on Cash Revenue (indicates demand for the network) and Adjusted EBITDA (shows cash left over to service debt and capex). Follow cash, not gaap (easily manipulated).>> From earning PR on 8/1/01 << Pro Forma Continuing Operations (1) Cash Revenue $1,620 $ 1,287 $ 333 26% Recurring Adjusted EBITDA $ 472 $ 356 $ 116 33% (1) The Pro Forma amounts in the table above reflect, for both periods presented, the Company's acquisition of IPC/IXnet and the dispositions of both its ILEC business and GlobalCenter, as if each had occurred on January 1, 2000. >> It appears GX reported ILEC as a discontinued operations and revenue was recorded as such. That's why I asked. I'm still confused.