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

To: richroni who wrote (18947)	10/29/1998 3:41:00 PM
From: Eleder2020	Read Replies (2) \| Respond to of 29386

"I think we both were thinking that we would see at least $7 Million spread out over Q4, Q1, and Q2. Unfortunately, because of the revenue recognition stance that they have taken, the cash burn rate will continue to be high, and the INRANGE revenue won't hit the top or bottom lines in significant amounts." I have to agree with you Richard . They have the cash in hand and have taken a more conservative approach on how to recognize it as Ancor delivers on their service contract for the next 5 years. Say Ancor took Q4 Q1 and Q2 and took all that revenue. Looks like amazing growth until you hit quarter 3 and the bottom falls out. So now for the next 5 years every quarter starts with a minimum of $470,000 booked as revenues. Say we get another Inrange type deal. Just say it was the exact same deal. All of a sudden we are looking at $1 million minimum quarters before we get to the next OEM. One thing for sure . NO sub $470K quarters. I would have been happier if it were a 3 year deal but at this point Ancor has got to be pleased. MY QUESTION- How does it get recognized on the bottom line? Is there an answer out there. Ed