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 : Qualcomm Incorporated (QCOM) -- Ignore unavailable to you. Want to Upgrade?

To: Stu R who wrote (112603)	2/8/2002 1:44:03 PM
From: slacker711	Read Replies (3) \| Respond to of 152472

The way I read the receivable issue is simply the same as the payment for a license fee with equity only the timing is different. In other words Q was owed money in the form of a receivable and instead of getting paid in cash they accepted the customer's stock. In effect the two transactions are the same only the timing of it is different. Hope that helps. Just to try and walk through an example. Say COM DEV was charged a $5 million dollar license fee. They gave $1 million in cash (booked as revenue) and an IOU for $4 million in stock (booked as receivables). They issue the stock a quarter later and the receivables dissapear and the other $4 million shows up as revenue. Is that how it would work? Slacker