Re: Question About SA

In article <VA.0000008e.956f4974@xxxxxxxxxxxxxxxxxx>, Steve Tyrakowski
wrote:
Of course, for CodeGear, the issue will be the timing of revenue
recognition. A new license or upgrade gets recognized immediately, while
SA must be recognized over the life of the subscription term. Switching
over to this model will probably hurt earnings for 2 or 3 quarters until
the number of inforce subscriptions builds up.

On renewals we take 1 x 17.5% + 11 x 7.5%. When you start, as you say, it
hurts the numbers but once you're up to speed it steadies the month and
quarterly figures significantly and (for us) cuts the amount of tax we have
to pay - of course you pay eventually, but on our scheduling we put off
paying tax on 45% of what comes in for a year (UK small company regime)

--
Tony Bryer SDA UK 'Software to build on' www.sda.co.uk
Software Industry Conference 2007 sponsor www.sic.org
Hyatt TechCenter, Denver, July 12-14, 2007

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