We believe the negative response to the quarterly results is slightly overblown, as the company's deferred revenues
were up 17%, compared to 12% revenue growth.
Non-GAAP net income is defined as GAAP net income after including deferred revenues
related to the fair value adjustment resulting from purchase accounting and excluding stock-based compensation expenses, amortization of acquisition-related intangible assets, inventory write-off expenses, regulatory matter expenses, acquisition-related expenses, restructuring costs and compensation expenses related to the acquisitions.
To date, growth in unrestricted net assets has been constrained by operating deficits and an adjustment to fiscal 2005's beginning net assets for a transfer of investments to the state's capital facilities matching trust and net unrecorded deferred revenues
related to certain contracts and grants.
4m; deferred revenues
as of June 30, 2014, increased 33 percent year over year to USD61.
If these customers assert their rights to these penalties, all or a portion of these deferred revenues
may not be recognized.
Also of significant importance is the fact that deferred revenues
, as reported on the balance sheet, increased to over $1.
and other adjustments includes acquisition-related deferred revenue
adjustments which reflect the fair value adjustments to deferred revenues
acquired in business acquisitions.
Fair value adjustment for acquired deferred revenues
Our deferred revenues
and cash from operations are at an all time high with strong contribution from Keynote SIGOS," said Gupta.
Along with an increase in recognized revenue during the current nine-month period, there has been an increase of approximately $142,000 in deferred revenues
that will be realized over the next twelve-month period.
We note the stock has suffered from its reported Q4 but we believe that the non-recurring expenses and lower deferred revenues
will not be as meaningful in FY3/31/04.
At this point it is difficult to present estimates for the coming quarters, since we can not predict the amount of revenues deferred to future periods or deferred revenues
earned for each period.