Anyone have a reaction to this morning's column in TheStreet.Com about TSAI's new accounting policy? The gist of the story is that the latest numbers were puffed up by an accounting change: some revenue was accelerated into each of the last two quarters that would, in the past, have been recognized month-by-month, so that there's a greater chance future numbers will fall short.
To quote author Jeffrey Greenberg:
"Here's the rub: Looking at the numbers, it would appear that software licensing revenue, especially in the second and third quarters, would've not only fallen off a cliff, but turned negative, if the company hadn't recognized up front an additional $14 million and $19 million, respectively, under the new program. "It's an easy conclusion to draw," says CFO Gregory Duman. "But what we try to explain to people is that the revenues that we accelerated as a result of that new accounting standard are revenues that we would've recognized anyway." "
It seems that while CFO Duman is asserting that the revenues are legit, he's also agreeing that by booking them upfront future reported revenues will be reduced. Any thoughts?
Right off the top is that Nestor was demoing intersite. I have not read through it yet, but I will soon. I think Intersite is a little a head of its time. As websites get more use and there is ways to get more data from the users Intersite will come into its own. Good to see that there is somebody collecting Nestor. I think we will see at least $2 before the end of the year! Go TSAI GO Nestor