08-01-2013, 07:48 AM
I have a background in finance and accounting and their analysis is pretty bad. For example, they question the revenue recognition of NQ, but then do not even take the time to read NQ's 20f statement that clearly states that revenue is recognized as its earned and not all upfront as the report is claiming.
From their 20-f
"Provided collectability is probable, revenue is recognized over the usage period which is the same for software-related services and services where software is incidental to the provision of the services. "
"Revenue for pay-per-use services is recognized on a per use basis when the update is made. Revenue for the subscription services is recognized on a straight-line basis over the estimated service period provided all revenue recognition criteria have been met. "
The rest of their report questioning the scope and scale of enterprise and consumer has previously been debunked by other research and addressed multiple times by management. I'm not sure where Jcap is going with their persistance.
Its like they didn't even bother reading the 20f but based all their research on "employee" interviews. I personally have reached out to NQ and Michelle Ma and have always gotten a response to my questions and requests. So I don't really believe what Jcap has claimed is true regarding the company stonewalling them in their research efforts. I dont think Jcap actually asked for an interview.
From their 20-f
"Provided collectability is probable, revenue is recognized over the usage period which is the same for software-related services and services where software is incidental to the provision of the services. "
"Revenue for pay-per-use services is recognized on a per use basis when the update is made. Revenue for the subscription services is recognized on a straight-line basis over the estimated service period provided all revenue recognition criteria have been met. "
The rest of their report questioning the scope and scale of enterprise and consumer has previously been debunked by other research and addressed multiple times by management. I'm not sure where Jcap is going with their persistance.
Its like they didn't even bother reading the 20f but based all their research on "employee" interviews. I personally have reached out to NQ and Michelle Ma and have always gotten a response to my questions and requests. So I don't really believe what Jcap has claimed is true regarding the company stonewalling them in their research efforts. I dont think Jcap actually asked for an interview.