Roman Kassebaum wrote:

> Nick,
> 
>> License revenue, the large majority of
>> Delphi revenue, is not amortized.
> 
> Sorry for asking again. As a non-native speaker I do understand that you 
> are not earning money with Delphi. Is this correct?
> 

No, that is not correct.  Delphi IS making money.  What he stated was 
that when they are paid for a Delphi license, the take all of that money 
as 'income' at the time that the sale was made, they don't take (for 
example) a portion of it each month over a period of time (as an 
accounting action).


Further, it appears that I misunderstood/misinterpreted earlier 
statements about how things are handled.  My interpretation was that 
with the advent of 'SOX legislation' that they were 'forced' to amortize 
their income -- it now appears (if I'm reading correctly this time) that 
they are NOT doing so,  but would HAVE to do so if certain types of 
disclosures were made.


Going back to my original argument, IF this takes place, it should only 
offset earning over a period of a year, and after that, income/earnings 
would stabilize.  Given that (sooner or later) SOME action will PROBABLY 
occur that would trigger this requirement, it would seem prudent that 
they move to an amortized accounting method sooner or later.  Once that 
is done, there shouldn't be any further problems (as far as accounting 
rules are concerned) preventing them from discussions of roadmaps, etc.


David Erbas-White