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

To: Eleder2020 who wrote (18949)	10/29/1998 4:29:00 PM
From: Eleder2020	Read Replies (2) \| Respond to of 29386

Just because Tailwind hasn't sold their conversion or shorted Ancor is not all good news. It means that they now have a few million shares that at some point needs to be absorbed into the market whenever they decide to sell. Sooner rather then later? Who knows. Ed

To: Eleder2020 who wrote (18949)	10/29/1998 4:40:00 PM
From: Patrick Sharkey	Read Replies (2) \| Respond to of 29386

Ed, the answer to the revenue recognition question depends on what the real deal is with Inrange, something that we all should work to understand. Revenue recognition issues are controlled by fairly precise rules, and do not permit a company wide latitude or judgment, particularly when the cash is in the door. A company is not permitted to "manage" earnings to avoid a picket fence, even though that might be in the best interests of shareholders and the company. Something in that deal does not permit the recognition of cash actually received, which is a very unusual circumstances suggesting, among other things, that the cash is a loan which can be earned in the future, but which may be subject to return or refund. Until the deal is described in detail otherwise, I do not believe any more that Ancor 's deal with Inrange provides Ancor with the absolute right to $9 million, or even to $7 million. Maybe an accounting expert who is following the board can provide us with examples of situations where proper account procedures permit cash received to be recognized in an accounting period other than when received, and the type of circumstances which permit this to happen. This puzzle has my attention. Pat