Next quarter should be a blowout. Defferred revenue now higher than ever.
I believe that another wild and profitable ride is about to begin. To understand why, you need to understand that Astea’s volatility largely stems from the lumpy nature of its license revenue business. Its typical deal can range from $100,000 to over $1M. Often, the customer pays for the software, but the contract terms don’t allow Astea to recognize the revenue right away. When that happens, deferred revenue jumps and future quarters see the benefit.
Deferred revenue balance
December 31 2009 $4.8 million June 30 $5.7 million September 30 $5.6 million december 31 $6 million
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