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Technology Stocks : Vantive Corporation -- Ignore unavailable to you. Want to Upgrade?

To: Trader Dave who wrote (1937)	4/29/1998 9:51:00 PM
From: seth thomas	Read Replies (1) \| Respond to of 3033

Dave - you crack me up. Beat EPS, even come ahead slightly of Morgan estimate, CFO says they hit or beat goals, everyone acknowledges this is their toughest quarter (including you), and you call it mediocre??? In terms of license vs. services: you actually have very little discretion about services revenue recognition. The annual support part is fixed - no room for adjusting their. And, on the consulting, you either do the work, or you don't. If your customers need the work done, you have commitments to them, and you have the resources, then you do it. If the work is done, it gets recognized. where you have the room is on the licenses - for example, license revenue is not recognized until it is shipped - so you don't ship for a few days, until its into the next revenue period. Or, you don't sign the contracts - they are in "internal mail". So, if you can hit your revenue and EPS target loaded a little more on services side (which actually, they are not - VNTV at 62% license revenue is right in line with industry comps), save the license revenue for that rainy day. In fact, it says a lot that they still hit EPS on so-called lower margin services. Shows that company is internally efficient.