GREY:WSMXF - Post by User
Post by
99921on Jul 04, 2003 1:17pm
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Post# 6220073
Shrewd Timing
Shrewd TimingJust noticed an article about WRX in the June 27 National Post quoting Barry
Richards, a CIBC World Markets analyst. The heading is “Shrewd timing” and
the contention is that the switch to recognizing hardware sales over the life of
a contract was prompted by the high revenues generated in 2003 by the
Sears sale that would be impossible to duplicate in the coming year.
Spreading that revenue over the next three years or so avoids that problem.
He also says the switch to $US was prompted by the weakness of that
currency relative to $CAN which would have forced WRX to post high foreign
exchange losses if it kept reporting in $CAN. Richards said the timing of both
moves is “shrewd” but looks “too convenient.”