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Technology Stocks : TAVA Technologies (TAVA-NASDAQ) -- Ignore unavailable to you. Want to Upgrade?

To: M. Frank Greiffenstein who wrote (6343)	11/20/1997 5:06:00 PM
From: Jack Zahran	Read Replies (2) \| Respond to of 31646

DocStone, Since they use the Contract Completion method, doesn't this mean that alhough they are receiving revenue on a contract it doesn't show up till the quarter when the Contract is complete. Couldn't this explain why they seem to have so many expenses as well. With their growth rate, new Contract expenses would increase quarter to quarter, while revenue will not show up until the quarter that the conttract completes. I imagine that this method works great for fast growing companies since it delays the tax burden until growth slows down. I thought that was reason why Jenkins mentioned that Y2K revenue would hit the 2nd quarter since a couple of contracts would be completed before December and show up on the books early. Knowing that they use this method, it is hard to measure this company by their earnings, but more by their contracts and backlog. Is this reasoning sound? Jack