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 : Siebel Systems (SEBL) - strong buy? -- Ignore unavailable to you. Want to Upgrade?

To: j_b who wrote (1971)	7/21/1998 12:54:00 PM
From: Melissa McAuliffe	Read Replies (2) \| Respond to of 6974

j b, No customer pays up front all in cash. Therefore there is definitely a correlation between a/r and deferred revenue. As deferred revenue increases the only corresponding offsets are to either cash or receivables. At least these are the only offsets I can think of. If, e.g. a customer paid 20% down with the contract the company would book that to cash and the remaiiniing 80% to receivables. Just because rev isn't able to recognized doesn't mean it doesn't become part of the balance sheet.

To: j_b who wrote (1971)	7/21/1998 12:59:00 PM
From: Konehead	Respond to of 6974

I believe they are booking as much as they can as "deferred revenue" while maintaining a straight face. Believe it or not, this company has way more revenue than they need to drive earnings to the upside. I don't believe that the bulk of the deferred revenue is really lower quality. Agree that this stock is taking a breather after the run-up. Every quarter this stock has a great buying opportunity and makes money for folks hold it until institutions start hearing the good news about the latest quarter. Have heard that the Microsoft transaction is very large, Redmond didn't allow Siebel to publicize the full extent of the deal.