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Technology Stocks : RATIONAL SOFTWARE- BUY OR HOLD -- Ignore unavailable to you. Want to Upgrade?

To: Len White who wrote (2691)	10/19/1998 12:24:00 PM
From: Randy Ellingson	Read Replies (2) \| Respond to of 3115

Len and Thomas- Thanks for the explanation of deferred revenue. Is it true then that deferred revenue, once accounted for, is essentially profit at the gross margin? Or are expense associated with the revenue accounted for only when the deferred revenue processed? Also, from the sound of things here, the company seems to have little say in 'managing revenue' through deferrals. In what situations can they choose between deferring and taking revenue? Randy P.S. I am happy to email these questions to Rational's IR as well. That's a good idea. If they've got a backlog of ~$0.36 in earnings, that's significant IMO.