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Technology Stocks : The New QLogic (ANCR) -- Ignore unavailable to you. Want to Upgrade?

To: The Freep who wrote (18345)	10/2/1998 12:29:00 AM
From: Eleder2020	Read Replies (1) \| Respond to of 29386

>>>OK, I might sound ignorant here, but this doesn't make total sense to me. Why? Well, how are the Reg D guys gonna make a big profit shorting a stock at 1 or 2 or even 4 or 5? <<< Maybe they aren't interested in a big profit They get a 15%(profit) lock with extra shares as a premium(I guess you can call it interest) as part of the terms of financing with no further risk. The price they short at really doesm't matter to them . They are probably content with their 15%. >>>Perhaps I'm just not clear on how the Reg D people get out of a short position.<<< A)They would have to sell their long position to close out their short position for a net of 0% plus a small fee to the brokerage firm or B) they might be allowed to use their actual long shares to cover their actual short when they sell their long positions on the open market again for a net of 0% plus a small fee to to the brokerage firm. Scenario A) would take two transaction and I guess would assume a tiny amount of risk(not sure of the mechanics): while B) would be just 1 transaction and boom a riskless short with a 15% profit. They can do this everytime they get up to the 5% ownership level.Concwivably they would never have to cover their last short that would cover 5% of the Ancor outstanding stock. Hope this makes sense, because I'm still trying to completely understand it Ed

To: The Freep who wrote (18345)	10/2/1998 12:47:00 AM
From: Kerry Lee	Respond to of 29386

REQUEST FOR INFORMATION: Does anyone here have a CPA/technology background and/or familiarity with the FASB software revenue recognition standards that were implemented last year? These standards affected companies like MSFT but even more so, companies like ORCL. For example, in the past ORCL might have sold a large database software application to a Fortune 500 company for multimillions and booked 100% of the revenue in the initial quarter shipped. However, it is my understanding that the new standards have forced the software companies to defer the revenue to future quarters due to the principle that the project work is actually done over more than one quarter. I am trying to guess the likelihood of how many months that ANCR will recognize the $7 million licensing fee it receives from INRANGE ( different revenue recognition rule should be applied to the $2 million pre-paid royalty ). At this point, I am VERY doubtful that they will book the entire $7 million licensing revenue all in one quarter,eg Q3. As a separate issue, Ancor receives the $9 million CASH from INRANGE in 3 separate $3 million payments ( Sept/98, Dec 15/98, March 15/99), which obviously hits the balance sheet BUT has nothing to do with how/when they recognize the revenue.