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

To: investorgal who wrote (10599)	4/30/1998 11:33:00 PM
From: David Wang	Read Replies (1) \| Respond to of 14631

Informix just received "BUY" recommendation from James Pickrel, an analyst at Hambrecht & Quist. Tomorrow will be the big day for Informix.... check following... bloomberg.com ÿ

To: investorgal who wrote (10599)	5/1/1998 2:25:00 AM
From: Robert Graham	Read Replies (1) \| Respond to of 14631

I do not have a problem with this number being large considering the conservative accounting practices that has placed this figure in the books. Also I see where it is good if this number were to continue to increase. However, for it to be representative of the companies financial standing at this point in time, I would want at least the amounts yet to be drawdown to be comparable in some fashion to what the company is retaining of this amount in cash. At least show an increase in some form of asset. But it looks like this is not the case. It looks like the company has already spent the money. For instance, if this amount continues to become larger with no associated increase in cash, then there will be more of a divergence between the reality provided with accrual techniques and the actual financial reality of the company. The defferred amounts may for increasing amounts continue to show up as revenue and earnings even though it was spent several quarters back. I guess this is what can happen in an agressive restatement of the books by moving significant amounts of previously stated revenue forward into the future. Even though it appears the cash has already been spent, it is the drawdown from this and advances on unearned liscence revenue that has allowed Informix to book a profit for the past two quarters. This will not hit steady state until either a relatively long period of time has gone by or there is a large increase in revenue in the near term due to new sales. I hope I am making myself clear. Bob Graham