Replies to post #241269 on Wave Systems Corp. (fka WAVXQ)

[aleajactaest]

hi mmbg,

this is a billings vs sales issue again.

rot is counting billings. the sales figure (or income or revenues) is calculated based on the amount that applies to the period. with the billings figure, you get to count it all at once.

[player1234]

The revenue from the $2.3m deal will be recognized over the 3-year term of the deal. However, the cash is all up-front.

[Snackman]

You might want to check again: the 2.3 million was all cash paid this quarter for cash flow.

[RootOfTrust]

mmbg imo you are dreamin' about SMB enterprise billings being $1.5m less for Q1. Anything is possible of course, but wishful thinkin' on your part.

And btw don't confuse billings with revenue. Basically billings= money in the door whereas revenues is how billings are recorded as revenues basically. The $2.3m came in the door as cash all at once and will be taken as revenue over the three years of the contract. You should know this too; Q4 billings and revenue were each $2.9m, coincidentally.