Bix, the following quote from your post is the clearest demonstration to date of your confusion:
"Once again, you were the one who began the discussion about this subject. To project an accurate ARRR for 2001, a reasonable person will account for potential growth or decline in revenues (each quarter). If the orginal revenue projection was $ 27 million before revs decreased by 50% then it is reasonable to adjust your ARRR in line with the current Quarterly report."
You don't project ARRR. PERIOD. End of story. That's where your confusion comes in. The ARRR exists. It is last year's revenue. The $27 million comes from the addition of the Quantum, CBQ, Technet, Networkland, and EasySoft revenues in 2000. Once you have that total, the ARRR is fixed. Period. End of story.
You get confused because you mix up ARRR with 2001 projected revenue. Apples and oranges, Bix.
You can use the ARRR for 2000 to help you project revenues for 2001. But you don't change the year 2000 ARRR.
So let's project revenue for 2001, shall we. If the ARRR for the entities that now make up CBQ was $27 million in 2000, and we want to adjust that based on first quarter results, then we could be conservative and just subtract one-fourth of the non-Quantum ARRR (because we didn't own them in 1Q) and divide the resulting figure in half. The 2000 ARRR figure for the non-Quantum entities is $15 million. One-fourth of that is $3.75 million. Subtracting that gives a base of $23.25 million. Dividing that in half gives us a conservative 2001 revenue projection of $11.625 million.
Of course, the reason this is conservative is because we don't have any first quarter 2001 revenue performance numbers for Technet, Networkland, and EasySoft. We don't know if it is realistic to project a 50% decline in their revenues. Until we get the 2Q filing, though, I'm willing to use the conservative figure. So for the next three months, barring other developments (acquisitions, announcements of big new contracts, etc.) let's have a working assumption that the projected revenue for 2001 is $11.625 million.
But let's not mix that up with ARRR, please.
AI
