Interestingly, accounting principles and revenue recognition seemed not to have changed under the new CFO, Marc Rothman. This was a little surprising (although, yes, management has repeatedly denied it already) because one of the reason guidance was cut in the quarter was because certain revenues that they thought could be recognized in the quarter had to be deferred to subsequent quarters. The Jefferies analyst, the only one to ask a question about their accounting principles, asked the CFO on the call if they had any expectations in the near term to change their accounting policy and the CFO sounded pretty adamant in his reply that there was no near term expectation to change accounting policy.

Lastly, the only letdown about the earnings call was that there seem to be no interest in taking advantage of recent stock crash to buy back shares. The CEO sounded pretty sure that there will be no stock buyback program when the Citigroup analyst asked about its depressed stock price. He sounded very focused on 'fixing' the operational issues that they have now in order to compete with its main competitor in markets such as Europe that they have lost market share in recent quarters. 

SiHien Goh, Kapitall Contributor


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