SPO Networks Inc (SPOI)

[bigredbill]

Raven. You are probably correct in your statement about the 2010 results and I believe that the root cause of your concern is all in the timing and corporate policies related to "revenue recognition." If I remember correctly, at the end of Q3 they reported revenues based on receiving a purchase order or orders, not on shipments out the door. Similarly, I think that revenues in Q4 and Q1 were understated for the same reason - the timing of revenue recognition.

As to the controller having to deal with the accounts receivable, they will work themselves out over time. Either they will convert to cash as the buyer pays the bill or it will be written off as a bad debt if the receivable becomes un-collectable. The only real challenges for a comptroller in the case of HLNT is managing the cash flow to provide JIT money collections to pay the bills until the NIR matter is resolved.

Someone in a post used the analogy " you don't go to divorce court driving your new Ferrari and wearing a $3000 suit," in describing how HLNT had to not appear to the court in dealing with the NIR matter. It probably was Sparks. He does such a great job making legalese understandable. What an excellent contributor.

In any event imho HLNT is playing the role to the "T."