Savvy Trades and Investments

[nelson1234]

hweb, PCMI...in the conference call, they explained that one reason that revenue came in at 4% instead of the 5% they guided for; and the same for the 4% revenue growth guidance for the 2018 fiscal they just gave vs the 5% they gave last quarter, is because of new FASB accounting rules that started in 2018, and that they had not used in prior guidance.

Basically, Software Maintenance, Hardware Maintenance, and all Security sales are now to be reported on a net basis, vs the gross basis they were reported prior to the accounting rules change.

This new reporting on a 'net basis', also has the effect of increasing gross margins a bit (since you get the same gross profit on lower sales), which is part of the explanation of why margins were so impressive.

However, overall, there is no 'real change' to their sales or margins. But again, due to the way they have to report them, sales will be a tad lower than before, and margins a tad higher.

best.