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OK, analysts….an honest question
By Mark Evans | August 5, 2008
Frank Burch wants to know….
When, in fact, should NT get credit for deferred revenues?
- No one gives them credit when they get the cash for the sale. In those quarters, people say they missed their revenue numbers. At that point, they have to defer the revenue until some arcane sliver of software is plugged in.
· Then, in subsequent quarters, NT recognizes the revenue….but it’s supposed to not count because this revenue is from the past!
· A related crazy fact is that the operational expenses associated with the deferred revenue lowers opex margin in the quarter that the product ships…It’s crazy. At that point, the knock on NT is that the margins were too low.
So, analyst friends, what should NT do? These are the rules.
Topics: Financials |