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Technology Stocks : America On-Line: will it survive ...? -- Ignore unavailable to you. Want to Upgrade?

To: Keith J who wrote (7738)	2/12/1998 5:13:00 PM
From: Harry Larson	Respond to of 13594

The reason the deal was structured that way was so AOL could recognize into revenue big hunks up front for "set-up/production" etc. They did that. Then last summer the SEC 'advised' AOL to accrue over the term of the deal a hunk of what it had already recognized in Q2-3 1997. AOL re-stated those earnings. Even so, they were allowed to book into revenue and earnings in calendar 1997 about $30m over and above the term of deal accrual amounts. Q2 98 was the last quarter for that. In Q3 the amount from that deal drops from about $12m in Q2 to $4.3m. All of this is in AOL press releases, SEC filings, and conference call transcripts (available on AOL)