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Symantec Corporation Message Board

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  • Facts_and_facts_only Facts_and_facts_only Jan 15, 1999 4:47 PM Flag

    Above 25 by Friday?

    Deferred Revenue is Revenue which actually occurs
    in this quarter, but is recognized in different
    quarters for a variety of reasons. Companies such as MSFT
    use deferred revenue to smooth out variations in
    their business. Of course, it is illegal to do that,
    but smart accountants can always find ways around
    that.

    If you look at ERP companies such as PSFT, ORCL,
    Baanf etc, they have significant deferred revenues.
    Legally, it is supposed to represent revenue which should
    be recognized later when the actual services are
    delivered. So if PSFT agrees to deliver a product and its
    upgrade a year later, the deferred revenue would
    represent the upgrade which is due a year
    later.

    That's my understaanding. I am sure accountants can do
    much better that that. Good Luck.

 
SYMC
24.5101-0.2499(-1.01%)11:31 AMEST

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