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Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (320)	3/27/1998 6:48:00 AM
From: John Carragher	Respond to of 4509

Melissa I was just sharing an experience with you. I didn't think the municipality would return the software. However, we came close back in the early's 80's when burrough's? couldn't come up with the system they promised. We hired an outside consultant and burrough's picked up the tab for him and equipment rental for about 1 1/2 years. This guy was great and we got the system we wanted. Looking forward to psft earnings. see ya John

To: Melissa McAuliffe who wrote (320)	3/27/1998 8:53:00 AM
From: Mr Logic	Read Replies (1) \| Respond to of 4509

Agree. No decent company would book contingent revenues. The way to manage the numbers is either to (a.) not book revenue on quarter-end deals, but book the quarter after - ie. delay a few days, longer than that is also getting naughty in rev recognition terms or, (b) deliberately make the revenue contingent on the books but make the contingency something under your control. Also a little naughty, but clean and unlikley to upset stockholders in the short term. Typically the sales rep will want no 'real' contingency as he should not get paid. As you know, the sales rep and their management want the maximum upfront, irrevocable revenue each quarter, hence the quarter end/year end deals.