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Technology Stocks : ACCLAIM Entertainment -- Ignore unavailable to you. Want to Upgrade?

To: Ms. Baby Boomer who wrote (3128)	7/4/2002 12:20:19 PM
From: Ted The Technician	Read Replies (1) \| Respond to of 4149

Anyone listen to the conference call? I was surprised when the company cut off an analyst when he asked for more details regarding who the company was lending money to. This company has a relatively large accounts receivables. This either means that the company lent out lots of money or customers are not paying. To be fair, the company mentioned something about factoring their receivables in response to the "who are you lending to" question, but the company failed to answer the analyst's questions. Maybe someone can help me out here, but isn't factoring supposed to reduce the amount of receivables? The company records revenues upon shipment of the games to retailers. Its revenues might not reflect end-user demand. If the games do not sell, the company will take a large write-off later for returned goods. The company should be able to make the next quarter's increased revenues - after all, it is just a matter of "stuffing the channels".