Conference 7.286::digital

    I don't know but that would sure be a damn shame!  What we need to do is
    outsource our collections function to collect the dollars outstanding. 
    We have an enormous potential inflow of cash if we were just industry
    average on DSO.  I mean several hundred million dollars is there for
    just managing that piece of the business.  It is an incredibly poorly
    managed asset in our company.
    
    As a sales rep with this company for 5+ years I can count on 1 hand the
    number of times I have ever been contacted about recievables by our
    internal A/R.  And, I must admit that 2 out of the possibly 3 times has
    been in the last 2 months so maybe the proper focus is coming.  But we
    are not good at this, therefore, let's get someone to do it for us.
    
    Just my 2-cents.

    A good part of our problem with collecting money is getting a correct
    invoice to a customer.  I need a calculator to keep up with the number
    of bad invoices, which subsequently need rework.  One of these days,
    our many ordering systems will be merged, and we will have a common
    ordering channel for all Digital products and services.  

    RE: .2
    
    that issue is being addressed as we write....
    
    
    

re: .0

Lessee - the key to becoming profitable again involves a combination of
CUTTING expenses and INCREASING revenues. So, constraining your revenues
for the next quarter to 70% of potential would then make sense.

Riiiiggghhht. That fits with the way things are being done.

-Jack

    re .4
    
    	Well, if you sell them now, you get the money now, not after Q1.
    	Also, I wonder how much we spend in 'collection' efforts.
    
    Yes, it very well could be true!! As dumb as it sounds...
    
    /Bob

    
    Whether or not it's dumb can only be determined if you know
    the cash position of the company right now. I *certainly*
    hope this particular rumor is not true, because it would
    mean that we are probably in a desperate cash situation,
    I think.
    
    Glenn

re:.2..

    ...                                              One of these days,
    our many ordering systems will be merged, and we will have a common
    ordering channel for all Digital products and services.  



	What a concept....!

    This sounds like a spin-off rumor created from a (real) note from
    someone without Corporate Treasury which was accidentally distributed
    over the net (and made the Wall Street Journal).
    
    Sounds like the story has been horribly contorted, such that the rumor
    in .0 probably has no basis in fact.

Well, God only knows I never pretended to be a financial genius. But I was
thinking about this in light of how I try to manage my personal finances.

If I were to cut a deal with someone to supply me with my advance salary
for a quarter right now, because I needed the cash, then wouldn't I be in
the very same position another three months from now? (Given the fact that
I haven't any better short/long term plans in place than this company has.)

Not too smart, I think.

-Jack

    I heard the initial receivables factoring request for funds was turned
    down by the bank involved.  There may be more attempts to try to raise
    needed funds for operations this way, as well as through other channels,
    but the price will be very high...we're very near junk-bond rating
    status.
    
    Mark
    

    
    Hey if it is true then we've done a very GOOD job of selling the
    receievables.  Anyone that has ever been in the mortgage purchase (or
    loan purchase, etc) game realizes in an instant that the going rate for
    buying a debt is 50 cents on the dollar.  To have sold them at 70 cents
    on the dollar is amazing and encouraging.
    
    Digital (or any company with outstanding receivables) does NOT collect
    100% of the revenue.  Not all of the customers are as honest or as able
    to pay for their purchases (some have gone out of business, some are in
    litigation); it is a fact of business.  There is also the cost of
    collecting those receivables in terms of opportunity loss and employee
    overhead.
    
    By the time you get to the actual net revenue it is already at OR BELOW
    70%.  We did the right thing if this rumor is true.  Its about time we
    heard some good news and recognized it as such.
    
    cw

    It's also possible that what we're selling is overdue receivables,
    which would be a routine operation. 
    
    --bonnie

    
    
    
    I find it hard to believe that anyone in their right mind would pay 70% 
    for overdue recievables.  
    
    
    
    
    Mike

    Usually when receivables are factored only invoices <60 days 
    can be sold. Older invoices are considered of doubtful collectability. 
    
    Linda

    Re .13
    .0 says "0.070/dollar"
    that's 7%, or 7cents for each dollar.
    
    Jim

    re: .15
    
    Original typo on my part, as I heard 70 cents on the dollar.
    Thanks for the discussion, but it sounds like yet another unfounded
    rumor!
    
    

    re: .13
    
    I read it as 7%, not as 70% -- 7 cents on the dollar is generally about
    what bill collection agencies pay.  
    
    But if it really is 70 cents on the dollar, yeah, that wouldn't be the
    overdue recievables.  
    
    --bonnie