Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Technology Stocks : PSFT - Fiscal 1998 - Discussion for the next year -- Ignore unavailable to you. Want to Upgrade?

To: Melissa McAuliffe who wrote (1504)	7/21/1998 12:48:00 AM
From: Simon	Read Replies (1) \| Respond to of 4509

Question. I've got a chart from end of April that says psft warned and the stock dropped from it's high of 55 over a 2 day period. Can anybody verify this. There seems to be no warning this time. Baanf is in a great formation along with SAP. I sure hope birds of a feather flock together.

To: Melissa McAuliffe who wrote (1504)	7/21/1998 2:19:00 AM
From: SteveL	Respond to of 4509

Hi all, New poster to this thread and unfortunately I am quite familiar with SOP 97-2, Software revenue recognition. This new SOP changes the whole ballgame. It essentially requires you to ignore all contractual terms as to what is "software" and what is "consulting". The result for PSFT (or SAP etc..) is that when software is sold with a corresponding package of consulting which is required as part of the arrangement to make the software "usable" to the customer, you can't recognize the software piece until the consulting is delivered. The boring and precise term for this is that you must have "vendor specific objective evidence of fair value" of every element whenever you have a "multiple element arrangement". Damn. Almost fell asleep typing that. There are several other nasty provisions, channel sales now have to delivered to the end user before recognition, even if the payment is non-refundable for any reason. The multiple element stuff is the big one for PSFT though (and they know it, I sat in a room with them and others during an EY teleconference). So if that saves anyone any reading I will bear the pain for all of us because I have already suffered for my sanity with this crap. Steve L.