Re: CodeGears lost 45% in revenue this quarter!

In article <46447dd3@xxxxxxxxxxxxxxxxxxxxxx>, craig_stuntz@xxxxxxxxxxxxx
says...
Jolyon Smith wrote:

aiui pre-order revenues would be reflected in the Q1 figures thanks
to the products shipping before 31st March.

That's unclear.

!?!? Delphi 2007 started shipping on March 16th.

When you got your ESD notification might determine whether or not _your_
revenue is included in the figures, but doesn't say anything about anybody
elses.


I got the ESD notification at 4:34 p.m. on 30 March.

In which case your revenue is in the figures.


My wild guess is that the product is considered "delivered" when I
download it the first time, but it could conceivably be when the email
goes out.

I suggest the latter. Otherwise, the same question would apply to a physical
box shipment.

Do you recognise the revenue when the box leaves the warehouse or when it
arrives on the customers desk? When they first look at it? When they open
it? When they install it? When they run it?

Answer: When it leaves the warehouse. The customer doesn't have it, but it
has shipped.

So for an ESD, why would whether the customer has actually downloaded it yet
be any more important than whether they've received a box that has been sent
to them?


I rather doubt that physical shipments happened the same day, and I'm
guessing they didn't go out on Saturday 31 March either.

Maybe not, but they had from March 16th to get them out the door, not March
30th which you seem to be focussed on for some reason.


It takes at
least a little bit of time to manufacture and box the media. But again,
those are guesses.

Why are you doing all this guessing? CodeGear announced general availability
of D2007 on March 19th, but some people started receiving notification on
16th.

This isn't guess work, it's readily apparent from the blog posts and official
statements that a quick google will find for you.


So combining all of these guesses into one even-less-accurate bit of
speculation, it's possible that some of the pre-orders counted towards
Q1, but probably not all or even most of them.

Do you recall that many SA customers were a little annoyed that their
shipments didn't seem to be receiving priority? Do remember that it was an
"accounting issue" that was blamed.

Remember that their SA revenue was already recognised in that quarter.
CodeGear didn't have to ship anything to them in order to be able to include
their $$s in Q1.

License purchasers and upgraders on the other hand had to have their product
shipped to them in order for CodeGear to recognise their revenue. And
emailing ESD customers that their purchase is available for download (as long
as the download IS available) almost certainly counts as "shipped" in those
cases.


So there's your "accounting issue" right there: SA customers simply weren't
as important to the accountants because their money was already on the books,
regardless of anything shipping or not.
.

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