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

To: Lee L. who wrote (10863)	5/21/1998 12:36:00 AM
From: MileHigh	Read Replies (1) \| Respond to of 14631

Restate earnings? With the accounting fiasco a few years ago, it seems IFMX would be ULTRA sensitive to any perceived management and accounting flaws, i.e., revenue recognition!? Somethin's up here! MileHigh

To: Lee L. who wrote (10863)	5/21/1998 12:43:00 AM
From: Robert Graham	Read Replies (2) \| Respond to of 14631

I wanted to see good news from now on. That is why I kept my stock and instead sold covered CALLs so I can weather any downturn in this stock. I thought the downturn would be due to dilution, not bad news like this that once again calls into question the credibility of the book keeping. Bad news like this is difficult for the market to forget. They are actually blaming it on their canned independent auditors even though it was them that came up with this observation that now has lead to another earnings restatement. The line of "we did this so you can trust our conservative accounting practices" will not work this time around. Income that cannot be traced to an end user sale is to be accounted for in a deferred account as a liability per their very own explanation of their "new and improved" accounting practices. This was not an upset over a technicality. Someone in Informix's accounting department made a fundamental mistake here. Once given direction to the new accounting practices in place, heck, I think even a green accountant could of understood the difference, or at least questioned the classification of this type of revenue. I hope Bob F will come out with a statement clearing the air over this upset. He needs to as a leader recreate his relationship with the market and not let this blunder do it for him. Finger pointing, no matter what substance there is to it, will be no substitute. I will stop here since I do not want to contribute any more negative statements to this conversation. Lets see...Bob F is certainly trying to keep on top of things, right? And Informix does have good products... Bob Graham