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Technology Stocks : Ascend Communications (ASND) -- Ignore unavailable to you. Want to Upgrade?

To: Lockhart who wrote (31937)	1/23/1998 9:54:00 PM
From: Maverick	Read Replies (1) \| Respond to of 61433

Daniel's def. of deferred rev is correct. Products were shipped to some accounts but the sale process has not completed. This situation happens when customers decide to buy equipments which have been in trial to make sure they work in a real NW. AR is simply money customers owe after a sale is closed. This could be due to a number of factors such as credit verification, check hasn't arrived, or cash crunch. Customers usually get equipments first, install them, or have the vendors do it for them, make sure the equipments work before paying. The question is how do I know about defered rev. Well, just take my word for it. Next time maybe Gary can ask mgmt directly about defered rev exiting a qtr after the earning is released.