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 : PEGA - Pegasystems -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (235)	11/4/1997 9:53:00 PM
From: Clam Clam	Read Replies (1) \| Respond to of 504

Interesting. So PEGA has decided to delay reporting financial results until it can find an auditor willing to sign off on their accounting. A payment from PEGA to First Data?? hmmm. so let's see; exchange software, book it as revenue, PEGA buries theirs in non-current A/R but pays cash for FDC's (which is 'old') and then they fire their auditors?? This is total speculation but I wonder if there is some difference in accounting if you use a reseller like FDC. PEGA books revenues 'early' because they don't sell perpetual licenses, they sell licenses which expire in 5 years and then need to be renewed. A simple answer might be that the reseller channel (FDC) sells a perpetual license, not a 5-year license. PEGA would then not be allowed to book revenue in the same manner. This seems way too obvious so it must be something more complex...