James Amphlett, a financial analyst with Xenon Capital LLC, gathered information about NetSuite Inc., a company whose shares Xenon might purchase for its computer software portfolio. NetSuite provided cloud-based financial and enterprise resource planning software to customers for a recurring subscription fee. The company's stock price performance over the last few years was nothing short of spectacular, having increased from around $10 per share at the end of 2008 to over $110 per share at the end of 2013. NetSuite was one of many companies that provided cloud-based computing services, and were often referred to as software-as-a-service (SaaS) companies. NetSuite generated sales through both direct and indirect approaches, with most selling activities conducted over the phone by its sales force. Xenon's portfolio manager asked Amphlett to pay close attention to the company's accounting methods, particularly its revenue and expense recognition methods. Xenon had become quite wary of companies such as salesforce.com, ADT, and Pre-Paid Legal Services, which experienced significant stock price declines after popular press articles criticized their accounting policies. Such stories invited close scrutiny from the US Securities & Exchange Commission. (SEC)

【書誌情報】

ページ数：12ページ

サイズ：A4

商品番号：HBSP-TB0449

発行日：2016/8/1

登録日：2016/9/6