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

To: H. Wai who wrote (10959)	5/24/1998 8:41:00 PM
From: MJ	Respond to of 14631

H.Wai, Informix knows the revenue will be 6.2M because this restatement applied to one IM deal in Q1 worth 6.2M. This will be recognised during 1997-8. MJ

To: H. Wai who wrote (10959)	5/24/1998 8:46:00 PM
From: MJ	Read Replies (1) \| Respond to of 14631

Wai, sorry, more: >Do you know how the revenue from IM like Octel is recognized? > Does it mean that only after Octel ships the product to its >customers will it pay > informix? That's the problem. The 'new' recognition practices dictate not recognizing revenue until it is received by the end user. With IM deals the database is embedded in the application- the application is sold to customers for many years- so how can all the revenue be recognised? The company needs to understand how the application will be deployed and make a judgement on when to recognise the revenue based on the projected sales of the product by the IM...not an easy one. In the past, IFMX analyzed these on a case by case basis. For this particular deal, the money has been received already, but the agreed recognition period will be approx. 2 years.