wilco it is a non issue. The alert came as a result of the increase in receivables from 12/31/01 to 12/31/02. The receivable balance as of 3/31/03 is not yet known that is why there is so little discussion on the topic. Receivables went from $14 million to $53 million year over year and that is what explains the alert, nothing more. Here is my earlier post on the topic that you may have missed.
Posted by: Desert dweller
In reply to: amrwonderful who wrote
Date: 4/18/2003 11:17:39 AM
Post #20120 of 20212
All that is is a static measurement that as of the last reporting date, 12/31/02 that receivables are up over the prior year. Duh, we knew that. The reason this could be important for some companies is that they could overstate sales and receivables and it could be a sign of deteriorating financial condition. Sunbeam comes to mind as a company that had this happen and very few analysts picked up on it when it was happening. Our situation is totaly different due to the business we are in and the ultra conservative accounting that this company adheres to. It has nothing to do with the current quarter. They know nothing more about the current quarter than we do, and they probably know a lot less. This is a non issue.
We know why receivables went up and if they have agreed with Nokia & Samsung, then the receivables for the 3/31/03 quarter will make the increase from the 12/31/02 quarter seem like chump change. We could theoretically be looking at receivables of over $400 million as of 3/31/02, how would that look? There is a possibility that since we have a signed contract and the triggering event (Ericy) happened during the 1st quarter, we could see receivables from Nokia & Samsung as of 3/31/03. In order for that to happen we probably need final word from both Nokia & Samsung that they are not going to arbitrate prior to the release of the 1st quarter information. I am not certain how management will handle the situation.
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