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To: ViperChick Secret Agent 006.9 who wrote (40655)	4/21/1998 8:13:00 PM
From: Dwight E. Karlsen	Respond to of 58727

Check this, lisa: BAANF reports .01 shr earnings. You know, BAANF, the Very High Flyer, with a pe of 135: biz.yahoo.com Tuesday April 21, 7:25 pm Eastern Time The Baan Company Reports First Quarter Revenue of $176 Million, Which Was Reduced by a Deferral of $43 Million Net income for the quarter decreased 81% to $2.4 million, or $0.01 per diluted share, compared with net income of $12.8 million, or $0.06 per diluted share for the first quarter of 1997. ------ Okay, supposedly it's to do with new accounting rules for deferral of license revenue. But still. I bet this one gets whacked good tom. Edit: they spent a goodly amount of ink trying to explain the revenue deferral. Evidently they are a little nervous about how this fickle market will receive this bit of news: The Company's first quarter results reflect an increase in deferred revenues of $71 million in the quarter. Approximately $43 million of the increase is due principally to the uncertainty in the implementation of the new accounting pronouncement, Statement of Position (SOP) 97-2, ''Software Revenue Recognition.'' Detailed implementation guidelines for this standard have not yet been issued. Because of this uncertainty, the Audit Committee and management have determined to defer revenue from licensed software that has been delivered to the customer under certain signed contracts even though they may have been paid in full. Amounts due under such contracts generally would have been recognized as revenue under the preceding accounting standard, SOP 91-1. Management, acting under the guidance of the Audit Committee, will continue to monitor and evaluate the impact of SOP 97-2 in future quarters. Including the $43 million impact of implementing SOP 97-2, revenues would have been $219 million. Revenue growth, as adjusted, would have been 59% and 64% for license revenue and total revenue, respectively. ''Our first quarter was in many ways the best quarter that we had since going public in 1995. However, due to uncertainty in the new American guidelines for revenue recognition, we have decided, in consultation with the Audit Committee to take the position that we should defer several contracts that we initially felt would be in line with SOP 97-2. Accordingly, our reported revenue and profitability for the quarter will appear disappointing and will likely overshadow the fact that our deferred revenues increased from $30 million at the end of the fourth quarter of 1997 to over $100 million at the end of the first quarter of 1998. Additionally, our cash and marketable securities position increased approximately 33%, growing from $216 million to $284 million. Operating expenses were lower than the levels in the fourth quarter of 1997 by $11 million due to our continued efforts to streamline operations. As another measure of our financial strength, our days sales outstanding of receivables, DSO's, when adjusted for the increase in deferred revenues, dropped below 100 days for the first time as a public company,'' said Tom Tinsley, Chairman.

To: ViperChick Secret Agent 006.9 who wrote (40655)	4/22/1998 12:02:00 AM
From: Patrick Slevin	Read Replies (2) \| Respond to of 58727

From the "Quick Exit " school. Reading a book on Option Pricing as I was trying to sleep I came across this which I thought I might pass on to you. I guess I have to credit the author and book. It's Natenburg and the book is "Option Volatility and Pricing". The blurb reads as follows, and could save some a bit of cash from time to time, methinks. ~~~~~~~~~~~~~~~~~~~~~~~~~~ ".......As market conditions change, a position which seemed sensible yesterday may not seem so sensible today. Based on new conditions a trader may want to ----indeed have to---- alter his strategy. This is true for all traders, not just for option traders. ........blah, blah.....Every trader reserves the right to make a more intelligent decision today than yesterday." I pick up things I think are salient to an ongoing topic and throw them out. Hope you do not take this the wrong way.