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Technology Stocks : TAVA Research - No Discussion -- Ignore unavailable to you. Want to Upgrade?

To: C.K. Houston who wrote (653)	6/30/1998 8:46:00 PM
From: C.K. Houston	Read Replies (1) \| Respond to of 810

Booking Revenues ... C.K. HOUSTON: When does TAVA book revenues. Upon issuance of invoice OR receipt of payment? DOUG KELSALL (TAVA CFO): It depends on the contract. GAAP requires certain parameters to be met to recognize revenue. Generally these requirements follow having a contract signed and work performed. The work performed requirement varies from contract to contract. For example, If the contract is Time and Materials, where we are contractually entitled to invoice a customer for the work we are performing on a monthly basis, we would record revenue for the work performed in the month. If the contract is fixed price, we record revenue on a percentage completed. For example, if we have a $100k contract and complete 10% of the work in the month, we would record 10% of the revenue in that month. For CD sales, we must have a contract, and have shipped the product, and can not have any contingencies. Long answer but a difficult question to answer. I would suggest you look at the notes to our audited financial statements in the 6/30/97 10-k which describes our revenue recognition policies in more detail. Re-post of April 12 response from TAVA CFO to CK HOUSTON'S email