SI
SI
discoversearch

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 : FirstWave Technologies (FSTW) -- Ignore unavailable to you. Want to Upgrade?

To: Mike M who wrote (7336)12/28/2002 10:54:30 PM
From: TEDennis  Respond to of 9677
 
I find it interesting that they already booked revenue for the Football Association. $60,600 for developer seats.

First of all, that's a lot of moolah for developer seats. I wonder how many seats that is?

Secondly, that revenue was booked in Q3 ... shortly after the FSTW/EL deal was signed. Certainly before the product was "available", which the new COO said would be November (maybe he meant next November?).

Apparently the Football Association is a Beta site for the new release. I'm not so sure that it's kosher to book revenue for Beta products, because you can only book "assured funds". It's not assured that the product will pass the Beta test and satisfy the user's contract. That's why it's called a "test".

Any GAAP experts around here who know the answer to that one?

TED



To: Mike M who wrote (7336)12/28/2002 11:06:11 PM
From: TEDennis  Read Replies (1) | Respond to of 9677
 
Here's the definition of "Revenue recognition" from FSTW's annual report:

We recognize revenue from software product sales upon shipment of the product when we have a signed contract,
the fees are fixed and determinable, no significant obligations remain and collection of the resulting receivable is probable.
firstwave.net

Those are AND conditions.

So, I guess they don't consider the completion of the development of the product a "significant obligation"?

TED


HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News