".if im wrong on cash flow recognition and each qtrly cash flow statement is recognising the total cash flow received for upfront 12 month subscriptionin IN THAT QTR ( and not amortised monthly cash flow over the subscription period )"
This has been done to death. And explained by sso many posters.
Please - no more!. It is incredibly simple:
Bank balance at beg of qtr Plus anything banked in the quarter Less anything paid in the quarter Equals bank bal at end of quarter
No ifs ands or buts. Its basic bookkeeping. =================================================== On a separate topic, another thing that makes it hard to extrapolate revenue is that some of the subs are for more than one year, some for less and some for exactly one year. I,e, one cant just take cash received in a quarter and divide by 12 to come up with a projected monthly revenue figure.
The Co. of course knows the minimum projections. i.e. they know which future periods the cash banked up to "now" relates to. So right now they know future revenues assuming no new subs are sold (absolute worst case scenario).
The annual report will give us some insight into this. I will be reading this one more carefully than previous ones!
The revenue figures are crucial to understanding future profitibility.
================================================= With regard to overseas, I would be looking to get the low hanging fruit first - choose one country and a few "big" customers and then worry about the rats and mice (still important) later
NEA Price at posting:
30.5¢ Sentiment: None Disclosure: Held
