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

To: Melissa McAuliffe who wrote (1972)	7/21/1998 1:58:00 PM
From: Bobo	Read Replies (2) \| Respond to of 6974

Good AR / Deferred Revenue response Melissa. Most non-accountants just do not understand. Are you really Howard Graham?

To: Melissa McAuliffe who wrote (1972)	7/25/1998 9:50:00 AM
From: SWF-Steve	Read Replies (1) \| Respond to of 6974

I am not an accountant, so please help me understand. Deferred revenue is an asset? SEBL sells a customer a package and receives 20% up front. They book the 20% as a sale (revenue). They then book the balance (80%) as deferred revenue? Isn't the 80% simply 'backlog' and, as such, shouldn't even be addressed on the balance sheet? DSO relates to receivables. Since the 80% hasn't been invoiced, it isn't a receivable, right? So, I'm not getting how extended DSO's and deferred revenue(?) relate, let alone cancel each other out. Again, your help is appreciated. Thank you.