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Technology Stocks : Aspect Telecommunications (ASPT) -- Ignore unavailable to you. Want to Upgrade?

To: Amsterdam who wrote (445)	10/19/1998 6:34:00 PM
From: Thomas Scharf	Read Replies (2) \| Respond to of 2018

According to the investor relations dept., roughly 85% of ASPT's sales are direct to the customer, not through distribution. I don't see how they could stuff enough into the remaining 15% of sales to make a significant difference in the bottom line. It was also pointed out to me that a typical system sells for $400K. How many distributors are going to tie up that kind of money without a firm order? I also asked about revenue recognition & was told that ASPT does not recognize revenue on a system until it is installed at the customer's site. This is a very conservative method. Many companies selling large ticket items recognize revenue when the equipment is actually sitting in a warehouse some where waiting for the customer to be ready for installation. Installation (& final payment) are often delayed for months. I think the channel stuffing rumors are simply a bunch of balogna being spread by short sellers & PUT buyers who are trying to take advantage of a nervous stock market.