Replies to post #231737 on On4 Communications Inc (ONCI)

[mary777]

Revenue = payments made to ONCI

AR = future payments made to ONCI

Increase in AR means we are CURRENTLY shipping new orders, and lots of them.

Let's say I'm a small business selling other small businesses. I sell on average 100k a month of product with NET 90 terms.

I will ship 300k and have A/R for the first three months of 300k with ZERO REVS.

By the fourth month, my revs are 300k but AR continues to grow because my business is growing. As I ship more product every month, my AR grows.

Now let's say I sell Wal Mart for the first time and ship them 1000K

Now my AR is 1300k with 300k in revs.

ONCI just shipped their large client in April--these will show as AR but not as REVS until we get paid.

Q3 will show a significant increase in revs because the AR is higher in Q2.

GLTU