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To: SE who wrote (5616)4/10/1998 8:48:00 PM
From: Tech Master  Read Replies (2) | Respond to of 10786
 
Scott-

Just a guess about recievables.... complete payment isn't made until all of the code is finished being tested.... about 60 days is a normal amount of time given to the customer to sign off on the code....

The receivable amount may reflect code that has been delivered but not been completely tested by the customer.... these dollars will move over in Q1....

Just a guess,

Tech Master

P.S. Can you tell that this stock is getting ready to move much higher? <ggg>



To: SE who wrote (5616)4/12/1998 12:38:00 PM
From: JDN  Read Replies (1) | Respond to of 10786
 
Dear Scott and Pancho: Regarding your questions.
1. Percentage of Completion method is preferable method when the contract is expected ot exceed the accounting cycle duration (1 year) Thus you should look at this change as indicative that ALYD has very large contracts.
2. Accounts receivable rising dramatically as company is now getting into substantial work compared to earlier quarters. Thats the good news. The bad news is that if business continues to grow dramatically there MAY be a question as to adequacy of working capital to fund the expansion. Dont know the answer to that.
JDN