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Technology Stocks : IFMX - Investment Discussion -- Ignore unavailable to you. Want to Upgrade?

To: Lizzie Tudor who wrote (10561)	4/30/1998 7:51:00 PM
From: Mark Harrington	Read Replies (2) \| Respond to of 14631

I work in intellectual property licensing and I can tell you that the revenue realization depends on many specific details of the individual deals and the accounting policies of the company. Many of these "deals" may be intent deals that have not been formalized by a contract i.e. the vendor was taking bids from IFMX and ORCL and has decided to commit to IFMX but, the specifics of the deal have not been ironed out. Or, the commitment has been made, but shipment of the product has not occurred in the preceding quarter --- many companies realize revenue upon shipment of a product. Additionally, if the deals included any royalty calculations, they could be revenue light up front (low revenue realized right now) and royalty intensive down the road (higher revenues later on). These deals also most likely contain long-term service or technical support commitments, which are usually not realized as revenue until performed, or divided up over time. This is pure speculation on how their deals are designed but, the fact that IFMX has many new customers (and solid enough relationships with them to get flattering comments from them in press releases)is good, and bodes well for revenue recognition in general but, not necessarily for the quarter in which a contract is won or announced. Mark