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

To: Jan Crawley who wrote (31951)1/23/1998 8:42:00 PM
From: Glenn D. Rudolph  Read Replies (1) | Respond to of 61433
 

Inventory in the channel still be accounted for as inventory --

Agree. But only at cost base. ( Respect your knowledge in this area; I am just learning.)

There are various types of channels. Copmany owned and VARs. Company owened is counted as inventory. VARs may be counted as a sale.

Glenn



To: Jan Crawley who wrote (31951)1/23/1998 8:43:00 PM
From: Daniel W. Koehler  Read Replies (1) | Respond to of 61433
 
Jan

I think large orders such as Williams can be structured to optimize the revenue recognition over several quarters such that ASND can ship as much of the total order as it may require over several quarters.

This is probably how backlogs can be used to manage earnings. But you just stick excess sales into a reserve account to be pulled out in a later quarter.

Ciao

Daniel


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